Suzano has announced that the company will acquire a 15 percent stake in Lenzing from B&C Group and the two shareholders will form a long-term syndicate which will hold the majority 52.25 percent stake in the company.
After the closing of the transaction, B&C will hold a 37.25 percent stake in Lenzing and keep the role as controlling member of the new syndicate, with Suzano holding the minority stake of 15 percent. The price per share will be 39.70 euros, with a total acquisition purchase price of 230 million euros to be fully paid at closing.
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 recognize 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.”
As part of the long-term partnership, Suzano has the option to acquire an additional 15 percent stake in the company from B&C until the end of 2028. The agreement also stipulates that B&C will remain a committed long-term shareholder in the company.
With an annual net revenue of more than 7 billion euros in 2023, Brazil-headquartered Suzano is the world’s largest market pulp producer. The company, which is celebrating its centennial year, has a long-standing track record of both operational excellence and commitment to sustainability at all stages of its processes, expertise that will complement Lenzing’s existing business model.
Moving forward, B&C and Suzano plan to support Lenzing’s further development by focusing on driving revenue growth, improving profitability and expanding the company’s international competitiveness.
“We see this partnership as a win-win-win situation for each party involved. With Suzano, B&C will add a financially strong key shareholder for Lenzing with extensive experience and strong reputation on the international financial markets. Suzano as the leading global pulp producer gains proximity to new markets thanks to this transaction,” added Wolfgang Hofer, chairman of B&C Group.
Lenzing’s headquarters, production facilities and key R&D activities will remain located in Austria and the partnership also guarantees the continued listing of Lenzing shares on the Vienna stock exchange.