The deal had been rumoured since administrators were appointed at ten Arjowiggins Group businesses in the UK just over four weeks ago.

Milan-headquartered Fedrigoni confirmed its latest buy today (24 October), and said the agreement had actually been signed a few days after the Arjo UK businesses went into administration.

Guarro Casas is located near Barcelona and makes fine papers used in binding and creative applications.

Fedrigoni described the mill, which employs 140 staff and has a history dating back to 1698, as the market leader in “high value-added finishing for luxury packaging, book covering and security applications”. The mill’s capacity is 7,000tpa.

Fedrigoni Group CEO Marco Nespolo said it marked a new phase in the acquisitive group’s growth strategy.

“The acquisition of Guarro Casas is a new chapter of our global growth strategy in the world of specialty papers for premium packaging and other creative applications that will allow us to serve all brands, designers, printers, converters even more effectively,” he said.

“The inclusion of this new company in our group will expand our portfolio with additional know-how and technologies fully complementary with ours.”

He pointed to future synergies will Fedrigoni's Self-Adhesives business unit, “with special reference to the premium labels segment”.

The terms of the deal were not disclosed.

Guarro Casas general manager Jordi Sauras welcome the new ownership and described Fedrigoni as “a solid, rapidly-expanding industrial reality”.

“Our two companies are extremely well-matched and Fedrigoni’s experience in the luxury packaging sector, its knowledge of processes and manufacturing, added to the global dimension, will be crucial in helping us to develop new and highly innovative solutions.”

The deal is Fedrigoni’s fourth buy this year. It has also signalled that its new manufacturing partnership with Mohawk could ultimately result in a takeover of that business.  

Bain Capital Private Equity and BC Partners are backing the group's growth plans and entered into a joint ownership agreement for Fedrigoni Group over the summer.

Arjowiggins’ other remaining mill that is not part of the UK administration is Quzhou in China, which makes translucent paper.

No buyer has emerged for its UK operations in administration, making a total shutdown the most likely outcome.