B&C Group to hand over majority stake to Lenzing

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The group announced on Wednesday that Brazilian pulp company Suzano will acquire a 15% stake in Lenzing for 230 million euros, with the possibility of acquiring a further 15% by the end of 2028. B&C will reduce its stake in Lenzing from 52.25% to 37.25%.

After the transaction is completed, B&C and Suzano will form a long-term Lenzing shareholder consortium, over which B&C will exercise control. Listed Suzano is the world’s largest pulp producer. The Brazilian group paid 39.70 euros per Lenzing share, above the current stock market price. Lenzing shares were last quoted at 32.20 euros, with a market value of 1.25 billion euros. More than 40% of the shares are free float, of which Goldman Sachs holds 7%.

The B&C Group had already announced in mid-April that it would be looking for a strategic partner for its core holdings Lenzing, Semperit and AMAG and therefore agreed to reduce its shareholding to below 50 percent. At the time it was said that all three companies, especially AMAG and Lenzing, would have to make investments that “the company could not always finance.” “With Suzano, B&C is able to gain a financially strong core shareholder for Lenzing that has considerable expertise and a reputation on the international financial markets,” said Wolfgang Hofer, chairman of the B&C Supervisory Board, in a press release. Suzano owner Walter Schalka said you can “make a valuable contribution to increasing the competitiveness of Lenzing’s business model.”