Suzano to Acquire Tissue Producer FACEPA from Farah Family

Suzano Papel e Celulose has announced to its shareholders, the market and other stakeholders the following.

On December 3, 2017, the Company and members of the Farah family ("Sellers") entered into a Purchase Agreement and Other Covenants ("Agreement") for the direct and indirect acquisition of approximately 92.84% of the total capital and 99.99% of the common stock of FACEPA Fábrica de Papel da Amazônia S.A., which is subject to certain contractual and legal conditions that are typical to transactions of this nature, including approval from Brazil's antitrust authorities.

The total consideration to be paid for the shares acquired is 310 million reais subject to adjustments. 

FACEPA produces and markets a wide range of paper products including, but not limited to, paper towels, napkins, diapers, toilet paper and tissues under various brands, with a strong presence in the Northern and Northeastern regions of Brazil. FACEPA has plants located in the cities of Belém in Pará and Fortaleza in Ceará, with installed capacity of around 50,000 tons/year.

The acquisition is in line with Suzano's goals of expanding its operations in pulp adjacent markets and will strengthen its consumer goods business unit in the tissue segment.