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Suzano has acquired a 15 percent stake in Lenzing. The Brazilian pulp producer bought the stake—for 230 million euros (roughly $249 million)—from B&C Group, the current majority stakeholder of the Vienna-based cellulosic fibers supplier.
Per the agreement, Suzano and B&C will form a long-term syndicate as the two will hold the majority—52.25 percent—stake in the company. The independent foundation holds a 37.25 percent stake in Lenzing and will remain the controlling member of the new syndicate, with Suzano holding the remaining 15 percent.
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“Lenzing and Suzano are two companies that have come to know and appreciate each other in recent years as relevant players on the international pulp market,” Stephan Sielaff, chief executive officer of the Lenzing Group, said. “Based on the core competencies in the area of pulp production and operational excellence, Suzano can make a valuable contribution to the successful implementation of our strategy. For us, the constellation of the two strong core shareholders B&C Group and Suzano S/A is definitely a win.”
Under the terms of the partnership, the Spinnova partner has until 2028 to acquire another 15 percent stake in the Tencel lyocell manufacturer from B&C. However, the agreement also specifies that B&C will remain a “committed, long-term shareholder” in the company. Moving forward, the shareholders said, B&C and Suzano will support Lenzing’s development by concentrating on driving revenue growth, improving profitability and growing the group’s international competitiveness.
“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,” Wolfgang Hofer, chairman of B&C Group, said. “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 fibers.”
With an annual net revenue of over 7 billion euros (about $7.6 billion) in 2023, Suzano is the largest market pulp producer in the world. The 100-year-old company said that, considering its long-standing track record of “operational excellence” and commitment to sustainability, it’s well positioned to complement Lenzing’s existing business model. The firm noted that it’s not a direct competitor of Lenzing but instead has “extensive experience” in the raw material—made using biomass produced from farmed eucalyptus trees—which has “significant importance” to Lenzing. Throughout the years, Lenzing has invested billions into wood pulp plants.