In a statement, Suzano said that it will buy a fifteen per cent share in Lenzing from B&C Group. The two owners will then form a long-term syndicate that will own fifty-two per cent of the company.
With Suzano owning a minority ownership of 15 per cent in Lenzing following the transaction’s conclusion, B&C will retain its 37.25 per cent stake in the company and its position as the new syndicate’s governing member. The € 230 million acquisition purchase price is expected to be paid in full at close.
Commenting on the development, Walter Schalka, CEO of Suzano, said in a statement, “Lenzing is already a leading global supplier of premium cellulosic fibres for the textile and non-wovens industry and we recognise opportunities exist for further growth with its established technology, product range and technical knowledge. Our deep-rooted understanding of pulp production and cost excellence makes Suzano, alongside B&C, an ideal partner for Lenzing.”
Suzano has the opportunity to purchase an extra 15 per cent of the company from B&C until the end of 2028 as part of the long-term collaboration. Additionally, the agreement states that B&C will continue to be a devoted, long-term shareholder in the business.
Brazil-based Suzano, which will have a net sales of almost € 7 billion in 2023, is the biggest market pulp producer in the world. The business, which is commemorating its centenary, has a long history of operational excellence and a dedication to sustainability throughout all phases of its operations; these skills will enhance Lenzing’s current business strategy.
Going forward, B&C and Suzano intend to help Lenzing continue to grow by concentrating on boosting revenue growth, enhancing profitability, and raising the business’s level of global competitiveness.
