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Suzano S.A. acquires a 15 percent stake in Lenzing from B&C Group

VIENNA (News release) -- B&C Group ("B&C") and Suzano S.A. ("Suzano") announce that Suzano has entered into a long-term partnership with B&C with respect to its majority stake in Lenzing AG ("Lenzing" or "the company"), 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 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 EUR 39.70, with a total acquisition purchase price of EUR 230 million to be fully paid at closing.

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 EUR seven billion in 2023, Brazil-headquartered Suzano is the world's largest market pulp producer. The company, which is celebrating its centennial year, has a long-standing track record of both operational excellence and commitment to sustainability at all stages of its processes, expertise that will complement Lenzing's existing business model. 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.

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 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.

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