Dec. 27, 2023 - Suzano on December 23 agreed to purchase 70,000 hectares of land in Brazil from two special-purpose firms managed by BTG Pactual Timberland Investment Group.
The land is located in the state of Mato Grosso do Sul — in the coverage region of Suzano's operations — with 50,000 hectares of productive area, in which part of it has eucalyptus plantation with different ages, Suzano said.
According to Suzano, terms and conditions of the transaction were established based primarily on the following conditions:
(i) acquisition price of 1.826 billion reais ($375.7 million), to be paid in cash on the transaction closing date, expected to occur in 2024, with the price to be converted into US Dollar if the closing occurs after March 31, 2024;
(ii) the acquisition price may be adjusted to reflect the position of the Target Companies on the closing date, with regard to usual economical and operational aspects in this type of transaction;
(iii) the transaction is subject to the approval of the Brazilian antitrust authorities (CADE) and other usual conditions precedent for this type of deal.
Suzano noted that the acquisition is aligned with its strategy to create optionality to its business and to expand its wood supply self-sufficiency.
Suzano is the world's largest producer of hardwood pulp and the global leader in the innovation and production of renewable, bio-based materials for consumer and industrial use.
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