Lenzing AG: B&C Group and Suzano Enter Into Long-term Partnership
Suzano S.A., a leading market pulp producer, has entered a long-term partnership with B&C Group by acquiring a 15% stake in Lenzing AG for EUR 230 million, at EUR 39.70 per share. This agreement forms a majority syndicate holding 52.25% of Lenzing, with B&C retaining control. Suzano also has an option to acquire an additional 15% stake by 2028. The partnership aims to drive Lenzing's revenue growth, profitability, and global competitiveness. Both companies emphasize sustainability and operational excellence. The transaction awaits regulatory approval.
- Suzano acquires a 15% stake in Lenzing AG for EUR 230 million.
- Agreement forms a majority syndicate with B&C, holding 52.25% of Lenzing.
- B&C retains controlling stake of 37.25% in Lenzing.
- Suzano has an option to acquire an additional 15% stake by 2028.
- Suzano, with annual net revenue of over EUR 7 billion, brings operational excellence and sustainability expertise.
- Partnership aims to drive revenue growth, profitability, and international competitiveness for Lenzing.
- Commitment to maintaining Lenzing’s headquarters, production facilities, and R&D activities in Austria.
- Guarantee of continued listing of Lenzing shares on the Vienna stock exchange.
- Transaction subject to regulatory approval, which could delay or hinder completion.
- Potential shareholder dilution if Suzano exercises the option to acquire an additional 15% stake by 2028.
- High acquisition cost of EUR 230 million may impact Suzano's short-term financials.
- B&C's reduced stake from 52.25% to 37.25% may affect its influence on Lenzing's strategic decisions.
Insights
Suzano's acquisition of a 15% stake in Lenzing AG for
This partnership aligns with Suzano's strategy to expand its market reach and move closer to the end-consumer. For Lenzing, having Suzano as a partner can enhance its supply chain efficiency, especially in securing raw materials, which is important for managing costs and maintaining profitability. Investors should monitor regulatory approvals and the integration process, as these will be pivotal in realizing potential benefits.
Short-term, the market might react positively to this strategic partnership, indicating confidence in Lenzing's prospects. Long-term, the focus will be on how effectively both companies can leverage their combined strengths to drive revenue growth and market competitiveness.
The formation of a long-term syndicate between B&C Group and Suzano holding a majority stake in Lenzing AG is a notable move in the textile and non-wovens industry. The strategic partnership, emphasizing revenue growth and international competitiveness, indicates a strong commitment to expanding Lenzing's market presence. With Suzano’s expertise in pulp production, Lenzing could see improved access to high-quality raw materials, enhancing product quality and cost efficiency.
Moreover, Suzano’s established reputation and financial strength can provide Lenzing with additional resources for R&D and innovation. This is particularly relevant in an industry where sustainability and technological advancement are key drivers. As Suzano is not a direct competitor, the collaboration is likely to be synergistic rather than confrontational, promoting mutual growth.
Retail investors should consider the broader industry trends, such as the rising demand for sustainable materials and the increasing importance of supply chain integration. The partnership's focus on sustainability and operational excellence aligns with these trends, potentially positioning Lenzing favorably in the market.
Under the terms of the agreement, Suzano will acquire a 15 percent stake in Lenzing from B&C and the two shareholders will form a long-term syndicate which will hold the majority stake (52.25 percent) in the company. Subject to the closing of the transaction, B&C will hold a 37.25 percent stake in Lenzing and keep the role as controlling member of the new syndicate, with Suzano holding the minority stake of 15 percent. The price per share will be
As part of the long-term partnership, Suzano has the option to acquire an additional 15 percent 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
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: “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.”
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
The transaction is subject to approval by the relevant regulatory authorities.
About Suzano S.A.
Suzano is the world’s largest producer of market pulp. Our responsibly grown raw materials are used in products reaching over two billion people in more than 100 countries, including tissue and toilet paper, books, printing and writing paper, diapers and period products, packaging, textiles, and a range of innovative applications that can replace products made from fossil fuels.
Our pulp is made using biomass produced from farmed eucalyptus trees, offering a biodegradable, renewable and recyclable raw material for consumer and industrial use. We plant 1.2 million trees a day on our farms and only harvest what we plant. We manage around 26,000 km2 of land and around
Suzano’s history goes back over 100 years. We are listed on the B3 stock exchange in
Learn more at: suzano.com.br/en
About B&C Group
The B&C Private Foundation (www.bcprivatstiftung.at) is an independent foundation. Since its inception in December 2000, its goal has been to foster Austrian entrepreneurship and strengthen Austria’s position as a business hub. B&C acts as a stable core shareholder in Austrian industrial companies through its holding companies, the B&C Group (www.bcgruppe.at). B&C is core shareholder of Lenzing AG and holds majority stakes in Semperit AG Holding (
View source version on businesswire.com: https://www.businesswire.com/news/home/20240612561637/en/
Press Contact:
B&C-Group: Jürgen Gangoly, Spokesperson, Phone: +43 664 2000260, Email: j.gangoly@bcholding.at
Suzano S.A.: Hawthorn Advisors, Email: suzano@hawthornadvisors.com
Source: Suzano S.A.
FAQ
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