New partnership for Fedrigoni and Mohawk
Thursday, September 22, 2022
Fedrigoni and Mohawk have agreed a manufacturing partnership that could ultimately result in Fedrigoni taking over the US-based paper maker.
The manufacturing deal was announced today (22 September).
Over the summer Bain Capital and BC Partners became joint owners of Italy-headquartered Fedrigoni with the aim of continuing to expand the business, which has already executed a number of M&A deals.
Mohawk, headquartered in Cohoes in New York state, recently agreed new financing with CIT Northbridge Credit.
Fedrigoni participated in the fresh financing through a convertible instrument.
“The alignment between Mohawk and Fedrigoni carries the potential to formalise a strategic transaction over the next several years,” Fedrigoni stated.
Fedrigoni said the two firms shared core values of craftsmanship, innovation and sustainability, and the manufacturing partnership would allow the duo to expand the global reach of their specialty papers.
Fedrigoni Group CEO Marco Nespolo said the agreement was a further element in the acquisitive group's growth strategy.
He said Fedrigoni intended to consolidate its “global primacy” in specialty papers for luxury packaging.
“Many synergistic opportunities are also present for our self-adhesive materials division, which will expand its leading position in premium labels for the wine market in the US,” he stated.
"This is an important step forward to reinforce our geographical penetration in the United States, where we will directly produce and distribute high value-added papers, leveraging all possible industrial and commercial synergies with our group.
"We will also better support the ESG strategies of our clients, especially those in the luxury sector by giving them the option of moving to near shoring rather than global purchasing.”
Thomas O'Connor Jr, CEO of Mohawk commented: “We are pleased to build upon our family's legacy of manufacturing and distributing paper recognised and trusted around the world for the many uses of our customers.
"Like Mohawk, the Fedrigoni Group is focused on expanding the specialty papers market. Our partnership will allow us to continue our commitment and focus on the development of increasingly high-performing, innovative, and sustainable solutions."
Fedrigoni employs more than 4,500 people in 27 countries. It had sales of €1.76bn (£1.48bn) in its most recent financial year.
Mohawk is a fourth-generation, family-owned business and is North America’s biggest privately-owned manufacturer of fine papers and envelopes.
The two firms said that they would also mutually explore the opportunities to grow market share for their Crane and Fabriano luxury stationery brands.