CMPC to Acquire Brazil's Iguaçu Celulose Papel for R$945.7 Million
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CMPC announced an agreement to purchase the forest and industrial assets of the pulp, paper and sack businesses of Iguaçu Celulose, Papel S.A., located in the States of Paraná and Santa Catarina of Brazil.
The agreed upon value of the acquisition is R$945.7 million (approx. US$166.9 million). This amount considers the price which will be paid to the sellers at closing and the payment of Iguaçu Celulose's current existing debt.
The transaction includes:
• three production units with annual aggregate manufacturing capacities of 105,000 tons of pulp, 120,000 tons of sack-kraft paper, 21,000 tons of special papers and conversion lines that can produce 500 million units of paper sacks per year;
• all the assets and services needed to operate these assets adequately as an autonomous ongoing concern; and
• forest assets for approximately 1.9 million cubic meters.
The deal is subject to several customary conditions, such as authorization from the Administrative Council for Economic Defense (Conselho Administrativo de Defesa Económica), which is required under Brazilian law.
CMPC expects to close the deal within the next 90 days if the agreed conditions precedent are met.
CMPC noted that the acquisition is expected to have a positive impact on its results even though for the time being, those results are not yet quantifiable.
