Target Information

NAPPAGE DEVELOPPEMENT, part of the LE NAPPAGE Group, is a prominent European player established in 1945 and undergoing its first leveraged buyout (LBO) in 1998 under the leadership of Didier DESTOUCHES. The company specializes in the manufacture and commercialization of single-use tableware products, offering a diverse catalog of more than 4,000 references, including napkins, tablecloths, table runners, placemats, and plates. NAPPAGE primarily serves a wide-ranging clientele encompassing large retail chains, discount stores, collective catering, and export markets, particularly in Italy. Notably, it holds the leading position in France for private label products within the consumer market.

In 2024, NAPPAGE posted a revenue of approximately €43 million, supported by around 40,000 square meters of production facilities and a workforce of 150 employees. It produces more than 2 billion napkins and 75,000 kilometers of tablecloths annually. The company is recognized for its industrial expertise, capacity for innovation, and dedication to environmental preservation.

Industry Overview

The industry of single-use tableware products in France has been undergoing significant transformations, reflecting changing consumer preferences and heightened awareness regarding sustainability. With an increasing number of consumers prioritizing eco-friendly solutions, industrial players are compelled to adapt their offerings and embrace sustainable practices. This trend is further propelled by stricter regulations aimed at reducing plastic waste and promoting biodegradable alternatives.

France's commitment to environmental sustainability has led to an increased demand for sustainable products. The government’s initiatives and EU-wide directives on single-use plastics have created a ripe environment for companies like NAPPAGE to innovate and develop new, environmentally friendly product lines. Proactive firms in this space are not only focusing on compliance but are also leveraging it as a competitive advantage in attracting environmentally conscious consumers.

In this competitive landscape, companies must navigate challenges such as rising raw material costs, shifts in customer expectations, and the need for enhanced supply chain resilience. Those that can effectively respond to these challenges position themselves strategically for future growth opportunities.

With a focus on sustainability, the French tableware market is poised for growth, especially for companies that can offer quality products while adhering to environmentally friendly practices. Collaborations between key players can enhance innovation and operational efficiencies, solidifying their market positions.

Rationale Behind the Deal

The acquisition of NAPPAGE by STEPAK BOURDIN represents a strategic milestone for both parties. This partnership ensures the sustainable operational continuity of NAPPAGE’s French segment while creating a new leader in the single-use tableware industry. By joining forces, both companies aim to leverage their complementary strengths, driving growth and innovation through shared resources and capabilities.

This move aligns with the broader trend in the market toward creating industrial champions that emphasize local production, control of supply chains, and eco-friendly transitions. The merger reflects a commitment to long-term growth and ecological responsibility in the face of evolving market dynamics.

Investor Information

STEPAK BOURDIN is a family-owned industrial group based in Tuffé (Sarthe), France. It is well-regarded within the paper products sector, specializing in single-use items through its subsidiaries, MANUFACTURE DE L’ÉPHEMERE and PAPETERIE DU BOURRAY. Approximately 80% of STEPAK's operations are dedicated to the cafés, hotels, and restaurant sectors, showcasing its strong foothold within the industry.

The group is equally committed to fostering sustainable practices and local production. By aligning with NAPPAGE, STEPAK reinforces its commitment to innovation and enhancements in operational sustainability, creating new opportunities for growth in the evolving market landscape.

View of Dealert

This acquisition is considered a strategically sound investment for both NAPPAGE and STEPAK BOURDIN. By combining resources, they can enhance their competitive positioning in a challenging market, where the demand for sustainable products is increasing. The merger allows for optimized production capabilities and broadens the market reach of both entities, establishing a formidable market presences.

Moreover, the shared vision of fostering an environmentally responsible and local production strength aligns well with current consumer trends, making the partnership not only appealing but also timely. If managed effectively, this could lead to significant growth opportunities as both entities focus on innovation and sustainability.

As they combine their expertise and product offerings, the potential to emerge as leaders in the eco-conscious consumer market is substantial. Both companies are well-positioned to capitalize on the trends shaping the tableware industry and offer their clients a broader range of innovative, sustainable products.

In summary, this deal represents a proactive approach to navigating the future of the single-use tableware industry, establishing a foundation for growth that prioritizes both market leadership and environmental stewardship.

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