Klabin has invested USD 1.16 billion to acquire 85,000 hectares of productive forest areas in Parana. The acquisition makes gains for the company’s target to be self-sufficient in wood, offers operational synergies, and generates value for Klabin.
Dec 21, 2023
Klabin, the largest producer and exporter of packaging paper and sustainable paper packaging solutions in Brazil, has announced the acquisition of Arauco’s forestry operation in Paraná, Brazil. The investment of USD 1.16 billion includes the purchase of 85,000 hectares of productive forest areas mostly in the state of Paraná and 31.5 million tons of standing wood (expected volume), in addition to forestry machinery and equipment. The conclusion of the deal is subject to suspensive conditions customary in transactions of this nature, including approval by Brazil’s antitrust body, CADE.
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Among the benefits of the acquisition, the company highlights the early reaching of its 75 percent self-sufficiency target in wood in Paraná, and the completion of the expansion of land in the region, which significantly reduces future investments and makes substantial gains with operational synergies. In addition, after the first cycle harvest, Klabin will exceed its self-sufficiency goal by approximately 60,000 productive hectares, which can be monetized.
Mr. Cristiano Teixeira, Klabin’s CEO, says, “This is another move that reinforces the company’s focus on operational efficiency, with diligent capital allocation and net present value (NPV) estimated at approximately USD 412 million.”
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Mr. Marcos Ivo, Klabin’s Chief Financial and Investor Relations Officer, points out that the company maintains its solid financial position with robust liquidity and an extended debt profile. “This is a great opportunity in operational and financial terms, which will reduce the need to purchase wood from third parties, increase the company’s cost competitiveness, and create value for its shareholders.”
