Management Buy-Out Team Takes Ownership of Arjowiggins Creative Papers
The MBO in the UK covers Arjowiggins Fine Papers, which runs the group's Stoneywood mill in Aberdeen, and Arjowiggins Chartham, which operates the Chartham mill in Canterbury.
Oct. 3, 2019 - The management team of Arjowiggins Creative Papers on Sept. 25 announced the successful management buy-out (MBO) of its UK operations, securing 559 jobs and safeguarding two historic paper mills in Aberdeen and Kent. A week later, on Oct. 2, the management team took ownership of the remainder of the Arjowiggins Creative Papers' activities, protecting nearly 300 jobs in Europe and China and safeguarding the future of the iconic Arjowiggins brand. This deal protects the Guarro Casas mill in Spain, which has been in operation since the end of the 17th century, the Quzhou mill in China and offices in France and Milan. The company has been trading in administration since January 2019 following insolvency proceedings against French parent companies Arjowiggins and Sequana. The business will now be led by an eight-strong experienced leadership team headed up by current managing director Jonathan Mitchell. The MBO in the UK covers Arjowiggins Fine Papers, which runs the group's Stoneywood mill in Aberdeen plus an office in Basingstoke, and Arjowiggins Chartham, which operates the Chartham mill in Canterbury. Both mills dates back to the 1700s. The Stoneywood mill pioneered the production of fine paper in the 1800s and now manufactures products for designers, printers and clients worldwide under well-known brands such as Conqueror, Curious Collection and Keaykolour. The Chartham mill is one of the oldest employers in the area, specialising in the production of translucent papers, in particular the Gateway range which is recognised today as the world's leading brand of tracing paper. Commenting on the acquisition of the UK operations, Mitchell said, “We are absolutely delighted to have secured the future of a strong and sustainable business which has such a long heritage in the UK. Arjowiggins Creative Papers has world-renowned market-leading brands and products and a passionate and talented team. We are looking forward to taking steps to further strengthen the business and continue to provide first class products and customer service to our clients. “The last nine months has been an unsettling time for the company and we are extremely grateful to the administrators, FRP Advisory, for having allowed the business to continue to trade while we found a workable solution. The support we have had from our staff, customers, suppliers and the Scottish Government has been incredible and without them this deal would not have been possible. There has been a real combined will to keep this historic business alive.” The deal has been financed by Shawbrook Bank and SQN Asset Finance Income Fund as well as a number of strategic customers. Significant financial backing has also been received from national economic development agency Scottish Enterprise. The new company, Arjowiggins Group Ltd, will be based in Scotland. SOURCE: Arjowiggins Group Ltd |