In a significant move, Japan Pulp and Paper Co. (JPP) has successfully acquired the paper business of the insolvent Portuguese distributor Inapa for €25 million. This transaction marks a crucial step for Inapa, which has been navigating financial difficulties since declaring insolvency on July 29, 2024.
Key Takeaways
- Acquisition Value: JPP has purchased 100% of Inapa’s French operations, including Inapa France and its subsidiary JJ Loos, for €25 million.
- Financial Recovery: The sale is part of Inapa’s strategy to recover financially, having already secured €45 million from recent transactions.
- Conditions for Completion: The deal is contingent upon several conditions being met by February 1, 2025.
Details of the Transaction
The contract for the acquisition was signed recently, with the sale price set at €25 million. However, this amount may be adjusted if any funds or assets are transferred from the target companies to Inapa or related parties before the transaction is finalized.
The completion of the sale is subject to three key conditions:
- Regulatory Approval: The operation must receive authorization under European regulations concerning foreign subsidies that distort the internal market.
- Release of Guarantees: Any guarantees or encumbrances on the assets and shares of the target companies must be released, except for those related to the target companies themselves.
- Creditor Approval: The transaction must be approved by the creditors’ committee.
Background on Inapa’s Financial Situation
Inapa’s financial troubles led to its insolvency declaration earlier this year. The company has been actively seeking to divest non-core assets to stabilize its operations. On September 27, 2024, creditors granted a 30-day exclusive negotiation period with JPP, which resulted in overwhelming support for the sale, with only one dissenting vote.
In addition to the sale to JPP, Inapa also finalized the sale of its subsidiary Inapa Packaging SAS to French firm Next Pack SAS for €20 million. This transaction was executed through Europackaging, another subsidiary of Inapa IPG, and included the indirect sale of several other companies.
Future Implications
As part of the restructuring process, Inapa’s shares will be delisted from Euronext Lisbon effective October 29, 2024, following its insolvency declaration. This delisting reflects the company’s ongoing efforts to streamline operations and focus on its core business areas.
The acquisition by JPP not only signifies a strategic investment in the European paper market but also highlights the ongoing trend of Japanese firms expanding their footprint in international markets. This move is expected to enhance JPP’s operational capabilities in Europe and strengthen its market position.
In conclusion, the acquisition of Inapa’s paper business by Japan Pulp and Paper Co. represents a pivotal moment for both companies, as Inapa seeks to recover from its financial challenges while JPP aims to bolster its presence in the European market.
