Suzano takes stake in Lenzing

In Austria, pulp producer Suzano has agreed to acquire a 15% stake in Lenzing, a global supplier of cellulosic fibers for the textile and non-wovens industry, from B&C. The two shareholders also agreed to form a long-term syndicate that will hold a 52.25% stake in the company.

Subject to the closing of the transaction, B&C will hold a 37.25% stake in Lenzing and keep the role as controlling member of the new syndicate, with Suzano holding the minority stake of 15%. The price per share will be €39.70 ($42.60), with a total acquisition purchase price of €230 million to be fully paid at closing.

Suzano is based in Brazil and is the world’s largest market pulp producer. As part of the long-term partnership, Suzano has the option to acquire an additional 15% stake in Lenzing from B&C until the end of 2028. The agreement also stipulates that B&C will remain a committed long-term shareholder in the company. 

 “Lenzing is already a leading global supplier of premium cellulosic fibers for the textile and non-wovens industry and we recognize opportunities exist for further growth with its established technology, product range and technical knowledge,” Walter Schalka, CEO of Suzano, said in a press statement. “Our deep rooted understanding of pulp production and cost excellence makes Suzano, alongside B&C, an ideal partner for Lenzing as it seeks strengthening its competitive position and global presence.”

The transaction is subject to approval by the relevant regulatory authorities.