BRAZIL – Suzano Papel e Celulose announced the execution of an agreement for the acquisition of wood and land owned by Duratex in the state of São Paulo.

The Agreement for the purchase and sale of forestry assets, commitment to purchase and sell rural properties and purchase option involves, initially, the acquisition of 9,500 hectares of rural land and 1,200,000 m³ of forests in the central region of São Paulo state. The transaction value is estimated at BRL 308.1 million.

During the same negotiations, a purchase option was formalized involving another approximately 20,000 hectares of rural land and 5,600,000 m³ of forest assets, in an operation valued at BRL 749.4 million. The purchase option may be exercised exclusively by July 2, 2018.

“The acquisition will enable us to shorten the average supply radius of our Limeira Unit in São Paulo, while also potentially enabling us to expand our pulp production in the state,” explained Suzano CEO Walter Schalka. The transaction expands Suzano’s solid forest base in the central region of São Paulo state, which includes 61,000 hectares of surplus land already available for use.

The consummation of the transaction is subject to certain conditions typical to transactions of this kind, including approval by Brazil’s antitrust agency CADE.