Suzano acquires nearly 70,000 hectares of land in Mato Grosso do Sul state for R$1.8 billion

With the agreement, Suzano increases wood self-sufficiency of its operations

December 27, 2023
min. read
Suzano acquires nearly 70,000 hectares of land in Mato Grosso do Sul

Suzano, a global benchmark in manufacturing bioproducts from eucalyptus cultivation, announces today (27) the execution of purchase and sale agreements of 100% of the ownership interest of the companies Timber VII SPE S.A. and Timber XX SPE S.A., managed by BTG Pactual Timberland Investment Group, LLC. Both companies own approximately 70,000 hectares of land in the state of Mato Grosso do Sul, in a region covered by Suzano’s operations, including areas where eucalyptus trees of various ages are planted. The transaction was valuated at R$1.826 billion and is subject to approval from Brazil’s antitrust authority CADE and other conditions precedent typical to transactions of this kind.

With this transaction, Suzano increases its self-sufficiency to supply wood to its operations in the state, where it operates an industrial complex in the municipality of Três Lagoas and is building a pulp mill in the municipality of Ribas do Rio Pardo. The world’s largest single pulp production line, the Cerrado Project will have annual production capacity of 2.55 million tons and should become operational by June 2024.

“The transaction consolidates Suzano’s autonomy in its strategy of supplying wood to Mato Grosso do Sul, reinforces the company’s discipline to constantly increase its competitiveness and creates optionality for the company’s business,” said Carlos Aníbal, Executive Officer of Forestry and Procurement at Suzano.

The payment is expected to be at sight, on the closing date of the transactions, and the acquisition price may be adjusted to reflect the position of the companies to be acquired on the conclusion date. If the agreement is concluded after March 31, 2024, the transaction value will be converted to U.S. dollar.

As the transaction is expected to occur in 2024, Suzano also announces today the review of its Capex for 2024. The estimated value was increased from R$14.6 billion to nearly R$16.5 billion.


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