Deal with B&C Group

B&C Group and Suzano agree on partnership

The ownership structure of the Upper Austrian cellulose fiber producer Lenzing AG is changing.

(Bild: Alois Huemer)

The shareholders B&C Group and Suzano S.A. are entering into a long-term partnership for a majority stake in Lenzing AG. Specifically, the Brazilian pulp producer acquires 15 percent of B&C's Lenzing shares. Together they hold 52.25 percent of Lenzing AG.

The B&C Group and Suzano S.A. announced today in a press release that they are entering into a long-term partnership for B&C's majority stake in Lenzing AG, a leading global supplier of cellulose fibers for the textile and nonwovens industry based in Upper Austria.

230 million euros
On the basis of this agreement, Suzano will acquire a 15 percent stake in Lenzing from B&C. B&C and Suzano will form a long-term shareholder syndicate, which will hold 52.25 percent of Lenzing after completion of the transaction. B&C will then hold a 37.25 percent stake in Lenzing and exercise control in this syndicate. The purchase price is EUR 39.70 per share, which corresponds to a total price of EUR 230 million. Suzano will have the option to increase its 15 percent stake in Lenzing and to acquire a further 15 percent stake from B&C by the end of 2028, whereby B&C will remain the long-term core shareholder of Lenzing under the partnership.

No direct competition
Listed Suzano S.A. is the world's largest pulp producer, headquartered in Brazil, with annual sales of over seven billion euros. The company, which is celebrating its 100th anniversary this year, can look back on a long history - experience that will complement Lenzing AG's existing business model. Suzano is not a direct competitor of the Upper Austrian cellulose fiber producer and has extensive expertise in the pulp sector, which is an important raw material for Lenzing AG.