Mercer International Acquires German Biomass Plant, Sawmill
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Global pulp producer Mercer International Inc., Seattle, Wash., USA, through its wholly owned subsidiary Mercer Timber Products (MTP), has completed the previously announced agreement to acquire substantially all of the assets of one of Germany's largest sawmills and a biomass power plant, near Friesau, Germany, for approximately $55.1 million plus defined working capital of approximately $6.5 million.
In connection with the acquisition, Mercer announced that it has also successfully replaced the existing EUR 25 million revolving working capital facility of its subsidiary, Zellstoff-und Papierfabrik Rosenthal GmbH (ZPR), with a new EUR 70 million joint revolving credit facility for ZPR and MTP.
The New Facility is available to both ZPR and MTP, with MTP's borrowings not to exceed EUR 45 million thereunder, has a five-year term, is secured by a first ranking security interest on the inventories, receivables and accounts of the borrowers and accrues interest at a rate of Euribor plus 2.95% per annum.
David Gandossi, Mercer CEO, said that"we are excited with the acquisition of the Friesau Facility and welcome its employees to the Mercer Group and look forward to working together to enhance value for all of our stakeholders."
