Suzano, the world’s largest market pulp producer, is set to purchase a 15% stake in Lenzing, a global producer of wood-based packaging materials, for €230 million
Suzano will acquire the stake from B&C, Lenzing’s current majority shareholder. Suzano and B&C plan to form a “long-term syndicate” holding a majority stake in the company, and under the partnership Suzano has the option to acquire a further 15% stake from B&C until 2028.
Besides producing textiles and non-wovens, Lenzing also develops fibre-based packaging materials that it describes as “naturally durable and biodegradable”. The potential end-uses for these products include tea bags, coffee pods, botanic nets, and reusable bags.
With an annual net revenue of more than €7 billion in 2023, Brazil-headquartered Suzano claims to be the world’s largest market pulp producer. Suzano, which is currently in its centennial year, isn’t a direct competitor of Lenzing and has extensive experience in pulp, a raw material, which it believes will benefit Lenzing.
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 to strengthen its competitive position and global presence.
“For us, this represents a continuation of our strategy focused on investments that enlarge our addressable market in scalable and competitive business models and move us closer to the end-consumer.”
The 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.
This announcement comes in the wake of rumours surrounding Suzano’s potential bid for International Paper. In early May, Reuters reported that Suzano had expressed its interest in an all-cash acquisition of International Paper – a move that could disrupt International Paper’s own plans to acquire DS Smith.
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