BRAZIL – Klabin, the largest producer and exporter of packaging paper and sustainable paper packaging solutions in Brazil, has declared the acquisition of Arauco’s forestry operation in Paraná.

The investment, totaling USD 1.16 billion, encompasses the acquisition of 85,000 hectares of productive forest areas primarily in the State of Paraná, along with an estimated volume of 31.5 million tons of standing wood, forestry machinery, and equipment.

This strategic acquisition offers several advantages, including the early achievement of Klabin’s 75% self-sufficiency target in wood in Paraná. It also marks the completion of land expansion in the region, resulting in significant reductions in future investments and substantial gains through operational synergies. Following the first cycle harvest, Klabin anticipates exceeding its self-sufficiency goal by approximately 60,000 productive hectares, which can be monetized.

Cristiano Teixeira, CEO of Klabin, emphasizes, “This move further underscores the company’s commitment to operational efficiency, prudent capital allocation, and a net present value (NPV) estimated at approximately R$2 billion.”

Marcos Ivo, Chief Financial and Investor Relations Officer at Klabin, highlights the company’s solid financial position with robust liquidity and an extended debt profile. He notes, “This presents a significant opportunity in both operational and financial terms, reducing the need for third-party wood purchases, enhancing the company’s cost competitiveness, and creating value for its shareholders.”

The successful conclusion of the deal is contingent upon customary suspensive conditions for transactions of this nature, including approval by Brazil’s antitrust body, CADE.