The Spanish paper company, S.A. Industrias Celulosa Aragonesa CIF (SAICA), has acquired Cutts Recycling, Doncaster, U.K.
SAICA says it purchased Cutts Recycling as part of plan to lock in tonnage for the recycled paper mill it is building near Manchester, U.K. Production on the Parthington mill is expected to start in March 2012 and cost £290 million (US $463 million). The mill has a rated capacity of 500,000 metric tons per year.
Patrick Cutts, co-founder of Cutts Recycling, says, "I am delighted that SAICA has acquired the Cutts Recycling business. SAICA is a very progressive family-owned business into which Cutts brothers will fit perfectly."
Cutts Recycling has two operations in the U.K., Sheffield and Doncaster. Cutts Recycling processes around 75,000 metric tons of recovered fiber per year, primarily old corrugated containers (OCC) and high grades.
SAICA was advised by Catalyst Corporate Finance and law firm Squire Sanders & Dempsey. SAICA initially appointed Catalyst to complete a market map of the U.K. paper and cardboard recycling businesses. Following a review, SAICA asked Catalyst to approach and acquire Futur Recycling, a Malmesbury, U.K. recycling company. That acquisition was completed in late 2010.
Catalyst also recommended that SAICA negotiate to acquire other businesses that could supply the paper company’s mill with raw material.
In 2008 SAICA acquired SCA’s 18 corrugated packaging facilities in the U.K. and Ireland.