SAICA - Acquisition of Cutts Recycling
Deal Summary
Catalyst advised S.A. Industrias Celulosa Aragonesa CIF (SAICA) on the acquisition of Cutts Recycling.
SAICA is a Spanish, privately owned, high performance corrugated packaging group with a head office in Zaragoza and employing 8,000 people across Europe. Its operations include paper recycling and collection, three paper mills and 45 corrugated packaging plants. SAICA has annual sales of €2.2 billion.
SAICA is currently building a 500,000 tons per annum paper mill in North West England at a cost of £290 million.
Cutts Recycling is a privately owned integrated waste management business with both commercial and Local Authority clients and operations in Sheffield and Doncaster. Cutts Recycling processes c75,000 tons of waste per annum, the majority of which is paper and cardboard.
SAICA's acquisition of Cutts Recycling follows the acquisition of Futur six months ago, a waste management business based in Wiltshire.
What difference did we make?
SAICA appointed Catalyst to complete a market map of the UK paper and cardboard recycling businesses.
Following this strategic review SAICA mandated Catalyst to approach the shareholders of Cutts Recycling and negotiate to acquire the business. Catalyst led the approach to the shareholders and negotiated the key terms of the deal. Catalyst then project managed SAICA's acquisition process including commercial, environmental, financial and legal due diligence.
Key to our role was understanding SAICA’s UK strategy and M&A processes and acting in our role as their UK based corporate finance advisor. Catalyst's deep knowledge of the waste sector helped to secure a key strategic acquisition at the right price and on acceptable terms to SAICA. This deal highlights Catalyst's strength in leading and completing a transaction in a challenging M&A environment and acting for overseas acquirers with a limited UK presence.
