Suzano Papel E Celulose, Salvador, Brazil, reports it has closed the deal for acquisition of all shares of Vale Florestar Fundo de Investimento em Participações ("Fundo Vale Florestar"). Through a subsidiary, Suzano signed an agreement to purchase all shares of Fundo Vale Florestar for R$528,940,906.15 on June, 4. 

 

The deal included a down payment of R$44,998,137.31, which was made on the settlement date (August 8) and the balance to be paid in annual and successive installments of 10 to 15 years, with the first of those installments payable one year after the settlement date. 

 

The purchased assets include 45,000 hectares of eucalyptus forests planted in the state of Pará, which Suzano will use as a wood supply for its Maranhão pulp mill. 

 

Suzano said that "The transaction is in line with Suzano's strategy of pursuing structural competitiveness to maximize business profitability, the main benefits of which are increased harvest flexibility, forest management by Suzano, and long-term payment." 

 

Vale Florestar is a fund for investment in reforestation, which operates throughout various municipalities lin the state of Pará, Brazil. In addition to planting more than 45000 hectares of eucalyptus in degraded lands, it has protected and recovered about 95,000 hectares of native forests.

Suzano Papel E Celulose is a producer of eucalyptus pulp, with markets in 31 countries producing printing and writing paper (coated and uncoated) and paperboard, with four lines and around 30 brands sold in 60 countries. The company owns SPP-KSR, the largest distributor of paper and printing products in South America.