The operation marks the entry of the Brazilian company specializing in cellulose into the textile sector
A Suzano announced, on the morning of this Wednesday 12th, the purchase of 15% of Lenzing shares, Austrian textile company. The operation cost the Brazilian company almost 230 million euros, the equivalent of over 1.3 billion Brazilian reals.
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In the announcement to investors, the pulp company said its acquisition of a minority stake in Lenzing aims first to learn more about the business and then to make a bid for control of the company. It has even been defined that Suzano will have the right to change control of Lenzing through the acquisition of a further 15% of the capital, at a price yet to be defined. This agreement is valid until the end of 2028.
The operation was carried out in partnership with B&C, the holding company that owns Lenzing.
The acquisition of the minority share marks Suzano’s entry into the textile sector. Lenzing is a global specialty fibers company headquartered in Lenzing, Austria, which, according to the Brazilian company, has strategically located factories around the world.
The Austrian company specializes in the production of wood-based cellulose fibers (lyocell, modal and viscose). It has an annual production capacity of over 1 million tons and is an industry leader
production of ecologically sustainable fibres. Its fibers are used in a variety of applications, including clothing, home textiles, hygiene products and nonwovens.
Also according to the announcement, even with the $1 billion transaction, Suzano said there will be no material impact on its leverage and/or debt.
Source: Terra
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