Sofidel, a global leader in tissue paper manufacturing and producer of the Regina brand, has entered into a Stalking Horse Asset Purchase Agreement to acquire key assets of Royal Interco, LLC, commonly known as Royal Paper.
The agreement, announced on April 9, 2025, positions Sofidel to purchase four Royal Paper facilities located in Arizona and South Carolina. These include a paper mill in Gila Bend, AZ—with an annual production capacity of approximately 61,000 metric tons—and three converting facilities: two in Phoenix, AZ, and one in Duncan, SC.
Royal Paper, an established player in both the At-Home and Away-from-Home tissue markets in the U.S., filed for Chapter 11 bankruptcy protection on April 8, 2025. As part of the reorganization, the company is auctioning off assets under Section 363 of the U.S. Bankruptcy Code. Sofidel’s agreement acts as a “stalking horse” bid, setting the baseline for other potential offers during the auction process.
Pending approval by the bankruptcy court and the satisfaction of regulatory and customary conditions, Sofidel aims to expand its U.S. footprint and production capacity. The company also intends to offer employment to a significant portion of Royal Paper’s skilled workforce, reinforcing its commitment to a smooth transition and operational continuity.
Cleary Gottlieb Steen & Hamilton LLP is advising Sofidel legally, with Lazard serving as its sole financial advisor.
Headquartered in Porcari, Italy, Sofidel operates in 13 countries and maintains a strong presence in 11 U.S. states. In 2024, the company reported €3.225 billion in net sales and continues to pursue its long-term goal of achieving Net-Zero carbon emissions by 2050.
