Suzano, the world's leading pulp producer, has announced its acquisition of industrial assets from Pactiv Evergreen in the United States for $110 million.
This strategic move marks Suzano's entry into the consumer and food service packaging segments in North America and includes the purchase of two mills located in Pine Bluff, Arkansas, and Waynesville, North Carolina. These mills produce liquid packaging board and cupstock, enhancing Suzano's production capacity by approximately 420,000 metric tonnes annually.
The acquisition, pending final regulatory approval expected later this year, will allow Suzano to expand its operations and strengthen its market presence. In addition to the purchase, Suzano has secured a long-term supply agreement with Pactiv Evergreen to provide liquid packaging board for its converting business.
With offices in Fort Lauderdale, Florida, and a research and innovation campus near Vancouver, Canada, Suzano is already the largest supplier of hardwood market pulp in North America. The company plans to leverage Pactiv Evergreen’s expertise to boost the competitiveness and profitability of the newly acquired assets, which are well-positioned within the cost structure of the North American packaging industry. This acquisition aligns with Suzano's strategy to increase its footprint in the food and beverage packaging sector, building on its established presence in Latin America.
Fabio Almeida, Executive Vice President of Paper and Packaging at Suzano, said:
“This acquisition is in line with our strategy. We are entering the North American market as a competitive producer of paperboard, taking on quality assets that are strategically well-located from an operational and logistical perspective, and opening new opportunities for growth.”
“As a business with 100 years of history behind us, we see this deal as an investment into our future and we look forward to building a long-lasting and positive relationship with the teams at Pine Bluff and Waynesville, as well as the local communities around both facilities.”
The transaction's completion is contingent upon the verification of standard conditions, including approval from a foreign antitrust authority. Upon obtaining approval, the asset acquisition will proceed at closing, with the price being subject to usual economic and operational adjustments for such transactions. The agreed-upon value will not significantly affect Suzano’s financial leverage or debt levels.
About Suzano
Suzano Papel e Celulose is a Brazilian producer of paper and pulp with a presence in over 80 countries. It is the largest paper and pulp company in Latin America.
About Pactiv Evergreen
Pactiv Evergreen Inc. is a leading manufacturer and distributor of fresh foodservice and food merchandising products and fresh beverage cartons in North America. The Company produces a broad range of on-trend and feature-rich products that protect, package and display food and beverages for today’s consumers.
