OpenGate Capital has completed the acquisition of DS Smith Packaging Papeterie de Nantes (Nantes mill) from corrugated and plastics packaging specialist DS Smith for an undisclosed amount.
Located in France, the Nantes mill produce white top testliner paper made from 100% recycled fibre, which is used in a variety of packaging applications.
It employs around 70 people and is capable of producing close to 50kT annually.
Under terms of the acquisition, the mill will continue to supply materials to its former parent company, DS Smith, and over time and under OpenGate’s ownership, will expand its customer base throughout France and Europe.
OpenGate Capital European investments partner Julien Lagrèze said: "The acquisition of the Nantes mill is a direct result of nearly a year-long discussion with DS Smith.
"We were proactive in identifying the mill as a perfect complement to NorPaper given its white top recycled testliner production capabilities, particularly with large widths and the business’s ability to produce testliner III ‘brown’ that will greatly enhance NorPaper’s product offering."
Earlier in 2011, OpenGate Capital acquired NorPaper Avot-Vallée from Canadian paper conglomerate Cascades.
NorPaper and the Nantes mill will have a combined annual capacity of 200kT.
OpenGate Capital European office principal Fabien Marcantetti said: "We will be examining all means to optimise the Nantes mill from an operational perspective through synergies with NorPaper.
"We will also seek to continue investing in the business to uphold high efficiency levels and increase production capacity. We are thrilled to have completed this acquisition and look forward to working with the team at Nantes to create new value."