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Suzano Completes the Acquisition of Two U.S. Industrial Facilities from Pactiv Evergreen

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Suzano, the world's largest pulp producer, has completed the acquisition of two industrial assets from Pactiv Evergreen in Arkansas and North Carolina, USA. The acquisition adds approximately 420,000 metric tonnes annually of integrated paperboard to Suzano's production capacity, making it a major supplier of Liquid Packaging Board in North America. The transaction is valued at US$110 million, subject to adjustments, and does not significantly impact Suzano's financial leverage or debt levels.

The deal includes a long-term commercial agreement for Suzano to supply liquid packaging board to Pactiv Evergreen's North American converting mills. The newly acquired assets benefit from competitive wood and energy costs, and good access to transportation infrastructure. Suzano aims to enhance operational efficiency, production scale, and safety standards at these units, potentially benefiting local communities and employees.

Suzano, il maggiore produttore di cellulosa al mondo, ha completato l'acquisizione di due beni industriali da Pactiv Evergreen in Arkansas e Carolina del Nord, USA. Questa acquisizione aggiunge circa 420.000 tonnellate metriche all'anno di cartone integrato alla capacità produttiva di Suzano, rendendola un fornitore di primo piano di Liquid Packaging Board in Nord America. La transazione è valutata 110 milioni di dollari USA, soggetta a regolazioni, e non influisce significativamente sulla leva finanziaria o sui livelli di debito di Suzano.

Il contratto include un accordo commerciale a lungo termine per Suzano per fornire cartone per imballaggi liquidi agli impianti di conversione di Pactiv Evergreen in Nord America. I beni acquisiti recentemente beneficiano di costi competitivi del legno e dell'energia e di un buon accesso alle infrastrutture di trasporto. Suzano mira a migliorare l'efficienza operativa, la scala di produzione e gli standard di sicurezza in queste unità, portando potenzialmente benefici alle comunità locali e ai dipendenti.

Suzano, el mayor productor de pulpa del mundo, ha completado la adquisición de dos activos industriales de Pactiv Evergreen en Arkansas y Carolina del Norte, EE. UU. La adquisición agrega aproximadamente 420,000 toneladas métricas anuales de cartón integrado a la capacidad de producción de Suzano, convirtiéndola en un importante proveedor de Liquid Packaging Board en América del Norte. La transacción está valorada en 110 millones de dólares estadounidenses, sujeta a ajustes, y no impacta significativamente la capacidad financiera o los niveles de deuda de Suzano.

El acuerdo incluye un contrato comercial a largo plazo para que Suzano suministre cartón para envasado líquido a los molinos de conversión de Pactiv Evergreen en América del Norte. Los activos recién adquiridos se benefician de costos competitivos de madera y energía, así como de un buen acceso a la infraestructura de transporte. Suzano tiene como objetivo mejorar la eficiencia operativa, la escala de producción y los estándares de seguridad en estas unidades, beneficiando potencialmente a las comunidades locales y a los empleados.

세계 최대 펄프 생산업체인 스자노(Suzano)가 미국 아칸소주와 노스캐롤라이나주에서 Pactiv Evergreen의 두 산업 자산을 인수 완료했습니다. 이번 인수로 스자노의 생산 능력이 연간 약 42만 톤의 통합 골판지 제조 능력을 추가하게 되어, 북미에서 Liquid Packaging Board의 주요 공급업체로 자리매김하게 되었습니다. 이번 거래 가치는 1억 1천만 달러이며, 조정이 있을 수 있으며, 스자노의 재무 레버리지나 부채 수준에 중대한 영향을 미치지 않습니다.

이번 계약에는 Pactiv Evergreen의 북미 전환 공장에 Liquid Packaging Board를 공급하기 위한 장기 상업 계약이 포함되어 있습니다. 새로 인수된 자산은 경쟁력 있는 목재 및 에너지 비용, 좋은 교통 인프라 접근성을 제공합니다. 스자노는 이러한 시설에서 운영 효율성, 생산 규모 및 안전 기준을 향상시키고, 이에 따라 지역 사회 및 직원들에게 잠재적 혜택을 주고자 합니다.

Suzano, le plus grand producteur de pulpe au monde, a achevé l'acquisition de deux actifs industriels auprès de Pactiv Evergreen en Arkansas et en Caroline du Nord, aux États-Unis. Cette acquisition ajoute environ 420 000 tonnes métriques par an de carton intégré à la capacité de production de Suzano, la positionnant comme un fournisseur majeur de Liquid Packaging Board en Amérique du Nord. La transaction est évaluée à 110 millions de dollars américains, sous réserve d'ajustements, et n'affecte pas de manière significative l'effet de levier financier ou les niveaux de dette de Suzano.

L'accord comprend un contrat commercial à long terme permettant à Suzano de fournir du carton pour emballages liquides aux usines de transformation de Pactiv Evergreen en Amérique du Nord. Les actifs nouvellement acquis bénéficient de coûts compétitifs en bois et en énergie, ainsi que d'un bon accès à l'infrastructure de transport. Suzano vise à améliorer l'efficacité opérationnelle, l'échelle de production et les normes de sécurité dans ces unités, bénéficiant potentiellement aux communautés locales et aux employés.

Suzano, der größte Zelluloseproduzent der Welt, hat die Akquisition von zwei industriellen Vermögenswerten von Pactiv Evergreen in Arkansas und North Carolina, USA, abgeschlossen. Diese Übernahme fügt jährlich ungefähr 420.000 metrische Tonnen integrierter Papierprodukte zur Produktionskapazität von Suzano hinzu und macht es zu einem bedeutenden Lieferanten von Liquid Packaging Board in Nordamerika. Die Transaktion hat einen Wert von 110 Millionen US-Dollar, vorbehaltlich Anpassungen, und hat keinen signifikanten Einfluss auf Suzanos finanzielle Hebelwirkung oder Schuldenniveau.

Das Geschäft umfasst eine langfristige Handelsvereinbarung, die Suzano den Lieferungen von Liquid Packaging Board an die Konversionsmühlen von Pactiv Evergreen in Nordamerika gestattet. Die neu erworbenen Vermögenswerte profitieren von wettbewerbsfähigen Holz- und Energiekosten sowie von einem guten Zugang zur Verkehrsinfrastruktur. Suzano verfolgt das Ziel, die Betriebseffizienz, die Produktionsgröße und die Sicherheitsstandards in diesen Einheiten zu verbessern, wodurch potenziell auch lokale Gemeinschaften und Mitarbeiter profitieren könnten.

Positive
  • Acquisition adds 420,000 metric tonnes of annual paperboard production capacity
  • Establishes Suzano as a major supplier of Liquid Packaging Board in North America
  • Long-term commercial agreement to supply Pactiv Evergreen's converting mills
  • Assets benefit from competitive wood and energy costs and good infrastructure access
  • Transaction does not materially impact Suzano's financial leverage or debt levels
Negative
  • None.

Insights

Suzano's acquisition of two U.S. industrial facilities from Pactiv Evergreen for $110 million is a strategic move that significantly expands its presence in the North American paper packaging market. The deal adds 420,000 metric tonnes of annual integrated paperboard production capacity, positioning Suzano as a major supplier of Liquid Packaging Board in the region. This vertical integration should enhance operational efficiency and potentially improve profit margins. The long-term supply agreement with Pactiv Evergreen provides a stable revenue stream, while the competitive wood and energy costs in the acquired locations could boost profitability. With minimal impact on Suzano's financial leverage, this acquisition appears to be a prudent expansion that diversifies the company's product portfolio and geographical footprint, potentially driving long-term growth in the paper-based packaging sector.

This acquisition aligns with the growing global trend towards sustainable packaging solutions. As the world's largest pulp producer, Suzano is strategically positioning itself to capitalize on the increasing demand for paper-based packaging alternatives to plastic. The U.S. market offers significant growth potential, given the rising consumer preference for eco-friendly packaging. By integrating these facilities, Suzano can better control its supply chain and potentially innovate more rapidly in response to market demands. The deal also strengthens Suzano's competitive position against other major players in the packaging industry. Investors should note that while this move diversifies Suzano's revenue streams, it also exposes the company to new market dynamics and regulatory environments in North America, which may present both opportunities and challenges in the short to medium term.

SÃO PAULO--(BUSINESS WIRE)-- Suzano, the world's largest pulp producer, today completes the acquisition of two industrial assets from Pactiv Evergreen in Arkansas and North Carolina, United States. All conditions for completing the agreement announced in July have been fulfilled.

The acquisition of the mills in Pine Bluff and Waynesville, that manufacture liquid packaging board and cupstock, adds approximately 420,000 metric tonnes annually of integrated paperboard to Suzano’s production capacity. The Brazilian company will now become a major supplier of papers used to produce Liquid Packaging Board in North America.

Fabio Almeida, Executive Vice President of Paper and Packaging at Suzano and CEO of Suzano Packaging US, said:

"We aim to scale our operations to meet the growing global demand for paper-based packaging. Our successful track record of asset integration gives us confidence that we will be able to enhance operational efficiency, production scale, and safety standards at these units, opening up new opportunities for the employees and positively impacting the local communities of Pine Bluff and Waynesville."

These newly acquired assets benefit from a high availability and competitive costs of wood and energy in the region, and good access to railways, ports, and highways.

The long-term deal signed by the companies establishes that Suzano will provide liquid packaging board for Pactiv Evergreen’s converting mills in North America under a long-term commercial agreement.

The transaction is valued at US$110 million, subject to customary price adjustments, and does not materially impact Suzano’s financial leverage or debt levels.

Suzano is currently the largest supplier of hardwood market pulp in North America. In addition to the mills acquired in Arkansas and North Carolina, the company has an office in Fort Lauderdale, Florida, and a research and innovation campus close to Vancouver, Canada.

Hawthorn Advisors

suzano@hawthornadvisors.com

Source: Suzano

FAQ

What assets did Suzano (SUZ) acquire in its recent US acquisition?

Suzano acquired two industrial facilities from Pactiv Evergreen: one in Pine Bluff, Arkansas, and another in Waynesville, North Carolina. These mills manufacture liquid packaging board and cupstock.

How much additional production capacity does Suzano (SUZ) gain from this acquisition?

The acquisition adds approximately 420,000 metric tonnes annually of integrated paperboard to Suzano's production capacity.

What is the value of Suzano's (SUZ) acquisition of Pactiv Evergreen's assets?

The transaction is valued at US$110 million, subject to customary price adjustments.

How does this acquisition affect Suzano's (SUZ) position in the North American market?

This acquisition establishes Suzano as a major supplier of papers used to produce Liquid Packaging Board in North America, expanding its presence in the region.

Suzano S.A. American Depositary Shares (each representing one Ordinary Share ) representing one Ordinary Share)

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