Acquisition of Paper Distribution Company in U.S. by Marubeni Corporation - established strategic sales channel in North America

Jan. 16. 2007
Marubeni Corporation

Marubeni Corporation (“MC”) together with its U.S. affiliate Marubeni America Corporation acquired 100% stake of a Connecticut based paper distribution company called Intragrated Resources Holdings Inc. (“IRH”) on January 11, 2007.
IRH is the parent company of A.T. Clayton and Co. Inc., a large privately owned U.S. paper distributor, and J. S. Eliezer Associates, Inc., the preeminent printing production consultant, both of which serve the catalog, direct mail and magazine industries.

IRH has unique skill set which is to sell paper through printing consultation, offering customers cost savings and lead-time reduction. They have strong relationship with large end users in the whole United States and hold a market share of 7% in coated ground wood market in U.S..

U.S. paper and paperboard market size is about 100 million tons annually, the largest in the world. Among that, printing and writing paper consumption is still growing at 2% p.a. while other advanced countries’ markets are matured already. U.S. demand expansion is supported by the growth of general consumer product markets based on the steady increase of population, which is rare in the advanced countries.

In the meantime, U.S. paper manufacturers have reduced their capacities which lead to increased imports. Especially, coated ground wood import is 1.7 million tons out of the whole demand of 6 million. Considering the upcoming capacity growth in Japan, U.S. is one of the good candidates as future export market for Japanese manufacturers. Historically there has never been a coated ground wood export from Japan to U.S., however, IRH could be a strong tool for the future opportunity.

MC will be the pioneer among the Japanese companies to enter the paper distribution in growing U.S. market. After the acquisition, MC would further increase the market share and develop stronger presence in pulp and paper industry.

Profile of Intragrated Resources Holdings Inc.
  : Stamford, Connecticut
C. E. O.  : Mr. Mark J. Vallely
Number of employees : 50 as group total
Business  : wholesale of printing paper and consulting on printing
Annual sales  : about $500 million (600 thousand tons)
Subsidiaries  : A. T. Clayton & Co., Inc.     J. S. Eliezer Associates, Inc. 

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