Inapa completes acquisition of Burgo's Spanish paper merchanting business Ebix, says move will make it country's third largest paper distributor with 20% market share

LISBON, Portugal , July 5, 2010 (press release) – Following the April 21st announcement and after concluding the due diligence process, Inapa Investimentos, Participações e Gestão, SA informs that– through its subsidiary Inapa España Distribución de Papel, SA – has formalized, on July 2nd in Madrid, the acquisition, to Burgo Group, of the paper merchanting business in Spain denominated EBIX.

The acquisition of EBIX business includes the customer base, own brands and trademarks, part of stocks and tangible assets essential to business and the transfer of employees and warehouse lease contracts. Debt or other contingencies are not transferred to Inapa.

With this transaction our Group reinforces its leadership position in Spain, becoming the third largest paper distributor, with a market share of 20%

The acquisition is in line with the Group strategic guidelines for 2010-2012 presented in the last Shareholders Meeting. With this business our Group reinforces its positioning in the Spanish market and expects to achieve commercial, operational and
administrative synergies.

On a consolidated level it is estimated that, on the first full year, Inapa sales will increase by 5% in volume and value and recurrent EBITDA by 10%.

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