B&C Group and Suzano S.A. announce that Suzano has entered into a long-term partnership with B&C with respect to its majority stake in Lenzing AG, the Vienna-listed leading global supplier of cellulosic fibres for the textile and non-wovens industry.
Under the terms of the agreement, 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 Euro 39.70, with a total acquisition purchase price of Euro 230 million 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.
Suzano is no 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.
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.
With an annual net revenue of more than Euro 7 billion in 2023, Brazil-headquartered Suzano is the world’s largest market pulp producer.
