The proposed transaction involves a €75m-plus (£64.7m) ‘new money facility’ and the extension of its existing revolving credit facility, term loan and secured loan notes by three years, to 2028.

The plans have been rubber stamped by most of Lecta’s shareholders and creditors, but remain subject to certain conditions to completion.

Spain-headquartered Lecta shared sales and volume projections as part of the announcement.

The group expects sales to increase by 4% compound annual growth rate (CAGR) between 2023-2028, growing from €1.43bn to €1.72bn. EBITDA margin is forecast to improve from 6% to 10%.

Its sales mix would also change dramatically, with coated woodfree papers falling from 43% to 27% of sales, and its Specialities operation – including self-adhesive substrates and release liners – set to make up the lion’s share of business at 64% up from the current 45%.

Purchased products makes up the balance.

Historically, CWF has accounted for some 55% of sales. As part of the reduction at this part of its business the group shuttered a CWF line at its Condat mill in France over the summer.

Lecta plans to invest €270m on capex, with €130m to be spent this year and in 2024 “rapidly transforming the business to improve margins and drive growth”.

The overall spend will be split across footprint transformation across Lecta’s seven production facilities (€116m); €35m on energy saving projects, and €110m on maintenance and IT.

Lecta’s management team is forecasting a payback period of between one to five years for the capex projects.

Lecta was formed in the late 1990s from the combination of Condat in France, Cartiere del Garda in Italy and Spain’s Torraspapel.