Under the terms of the agreement, market pulp producer Suzano will acquire a 15% stake in Lenzing from B&C and the two shareholders will form a long-term syndicate which will hold the majority stake (52.25%) 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 (£33.48), with a total acquisition purchase price of €230m to be fully paid at closing.
As part of the long-term partnership, Suzano has the option to acquire an additional 15% stake in the company 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.
With an annual net revenue of more than €7bn in 2023, Brazil-headquartered Suzano is not a direct competitor of Lenzing and has extensive experience in pulp, a raw material with significant importance for Lenzing.
Moving forward, B&C and Suzano plan to support Lenzing’s further development by focusing on driving revenue growth, improving profitability, and expanding the company’s international competitiveness.
Walter Schalka, CEO of Suzano, said: “Lenzing is already a leading global supplier of premium cellulosic fibres for the textile and non-wovens industry and we recognize opportunities exist for further growth with its established technology, product range and technical knowledge.
“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.
“For us, this represents a continuation of our strategy focused on investments which enlarge our addressable market in scalable and competitive business models and move us closer to the end-consumer.”
Wolfgang Hofer, chairman of B&C Group, said: “We see this partnership as a win-win-win situation for each party involved. With Suzano, B&C will add a financially strong key shareholder for Lenzing with extensive experience and strong reputation on the international financial markets.
“Suzano as the leading global pulp producer gains proximity to new markets thanks to this transaction. For Lenzing, this transaction means a commitment of both partners to strengthen Lenzing’s position as a global market leader for sustainable cellulosic fibres.”
Stephan Sielaff, CEO of the Lenzing Group, described the deal as “definitely a win”. He said: “Lenzing and Suzano are two companies that have come to know and appreciate each other in recent years as relevant players on the international pulp market. Based on the core competencies in the area of pulp production and operational excellence, Suzano can make a valuable contribution to the successful implementation of our strategy.”
In line with the foundation purpose of B&C Private Foundation, the new partners have agreed on a long-term commitment to the existing Lenzing site which will ensure the company’s headquarters, production facilities, and key R&D activities remain located in Austria.
The partnership also guarantees the continued listing of Lenzing shares on the Vienna stock exchange.
The transaction is subject to approval by the relevant regulatory authorities.
