Dec. 13, 2021 - CMPC on Dec. 8 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:
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.
CMPC produces and markets wood, pulp, packaging products, paper, tissue, and personal care products from certified plantations. The company has over 641,000 hectares of forest plantations, mainly pine and eucalyptus, located in Chile, Brazil and Argentina. CMPC Pulp operates 4 production lines in Chile and 2 in Brazil, with total annual production capacity of approximately 4.1 million metric tons of pulp.
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