Lucart Group places winning bid for Spain's Grupo CEL
16 November 2017
Italy's tissue paper and products company Lucart eyes growth in the away-from-home (AFH) segment in Spain and Portugal.
Lucart Group has won the bidding process to acquire the manufacturing assets of the insolvent Spanish tissue manufacturer and converter Grupo CEL Technologies & Systems SLU (CEL). Two other companies- the Chilean group Triple I and the Catalonian firm Iberboard Mill - were reportedly also interested in acquiring the Grupo CEL, but they did not submit a valid bid by the deadline for the bidding process on 2 November, according to official documentation from the insolvency administrator's office.
Grupo CEL runs two production lines for deinked pulp and three tissue machines at the mill in Zalla, and has 10 converting lines at two locations, producing tissue products for commercial (AFH) and private consumers. A soap factory with a capacity of 12 million litres is also part of Grupo CEL.
The Italian tissue group is pursuing a strategy for growth on the AFH market in Europe and the acquisition of manufacturing assets of the Spanish Grupo CEL would significantly increase the company's position on the Iberian Peninsula.
The official bid document indicates that Lucart Group has presented a business plan for the operating units of Grupo CEL that includes a reduction in the workforce, modernising and streamlining production, and repositioning of the product portfolio to increasingly serve commercial and industrial customers (AFH). The Italian company is making more money available for this project. Among other things, the winning bid includes €20m in investment money reserved for repairs, maintenance, modernisation and new equipment over the next five years.