The two companies came together around a year and a half ago to strengthen the distribution of specialty fine papers in the North American market.

Its latest transaction, announced by the two businesses today (23 February), was finalised through a NewCo incorporated by Fedrigoni to acquire Mohawk’s assets in a sale process initiated by a financial institution, “following a period of significant financial distress that affected the US-based company in the past months”.

“The transaction entirely cleared the new company from existing indebtedness, allowing it to preserve the majority of existing jobs, industrial activities and customer relationships,” a statement said.

“This is our third M&A this year (after SharpEnd in UK and Arjowiggins China), a relevant step forward to enhance our premium product offerings to customers in the US in specialty papers for luxury packaging and fine digital printing,” said Marco Nespolo, CEO at Fedrigoni Group.

“Thanks to Mohawk's entry into our group we will now be able to produce and distribute to customers a wide range of Fedrigoni high value-added papers directly in North America, and conversely expand access to Mohawk specialty papers internationally.

“We will thus increasingly support the strategies of our customers who favour nearshoring models in place of the traditional global purchasing-oriented approach, to reduce their environmental impact and minimise the risks of supply chain disruption.”

Fedrigoni employs more than 5,000 people in 28 countries and offers 25,000 products. The group sells and distributes in 132 countries.

Mohawk, meanwhile, is a fourth-generation, family-owned business founded in 1931 and headquartered in Cohoes in New York state.

Its brands include Crane Papers, Strathmore, Mohawk Color Copy,  Everyday Digital and Opaque.

GF Smith sells Mohawk papers in the UK and told Printweek that this will continue following the Fedrigoni deal. Premier Paper also sells Mohawk papers.