The final negotiations for the acquisition of a comprehensive corrugated board factory in northern Italy are underway. The cardboard factory mainly produces some high value-added products and provides high-level services. Many new companies are being built in the region. In recent years, the annual growth rate of corrugated paperboard consumption in this region is 10%.
At present, SCA has an annual output of 700 million square meters in the Italian market, which is a leading position with a market share of 17%. But its business is mainly concentrated in the north, this acquisition will be a supplement to this.
The planned acquisition of the factory has an annual production capacity of 50 million square meters. However, the actual output is only 50% of this figure. The plant's equipment and technology are advanced and its profitability is very good. The current annual sales volume is 80 million SEK. The price of the acquisition will be a multiple of the factory's income, which is based on the average operating income (EBITDA) for the past four years and does not exceed 6.0.
The company also plans to acquire a processing and distribution company in the Munich area. The company is a market leader in the region, has corrugated board processing capacity, operates a wide range of wholesale packaging products, and its business is mainly for small and medium-sized customers, providing them with a high level of service. Its profitability is very good, with annual sales of 130 million Swedish kronor. The price of the acquisition will be a multiple of the factory's income, which is based on the average operating income (EBITDA) for the past four years and does not exceed 6.0.