A Match Made in Heaven – Portals to Acquire Fedrigoni’s Security Business

Portals, the second largest commercial banknote and security paper manufacturer, has entered into an agreement with Fedrigoni, one of the leading European producers of specialty papers and self-adhesive labels, to buy its security business based in Bollate in Italy, which specialises in security threads and foils.

In a separate agreement, Portals is also acquiring a ‘put-and-call’ option to purchase certain banknote paper paper assets (including machinery) from the Fabriano division of Fedrigoni, which makes banknote and other security papers.

The completion of these two separate transactions could occur during the course of 2021, subject to customary approvals. The price has not been disclosed.

According to Portals, this strategic move shows confidence in the currency and high security sectors.

There has been speculation in recent years about the future of banknote papermaking in general due to long-term overcapacity, declining demand in some parts of the world, and more notes switching to polymer.