SAO PAULO (News release) -- Suzano, the world's largest pulp producer, has announced the acquisition of industrial assets from Pactiv Evergreen in the United States. This will expand the company's operations in North America and marks its entrance into the consumer and food service packaging segments in the region. The transaction is valued at US$110 million and includes two mills in Pine Bluff, Arkansas, and Waynesville, North Carolina, that manufacture liquid packaging board and cupstock.

Subject to final regulatory approval expected later this year, these assets will add approximately 420,000 metric tonnes annually of integrated paperboard to Suzano's production capacity. Alongside the acquisition, Suzano has signed a long-term supply deal with Pactiv Evergreen to provide liquid packaging board for its converting business.

Suzano is currently the largest supplier of hardwood market pulp in North America, with US offices in Fort Lauderdale, Florida, and a research and innovation campus close to Vancouver, Canada. Already a major producer of materials for food and beverage packaging in Latin America, Suzano will work alongside Pactiv Evergreen's team, leveraging its operational knowledge and experience in the paperboard business to enhance the structural competitiveness and profitability of the acquired assets, which are already comparatively well-positioned on the cost curve of the North American packaging industry.

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 acquired assets benefit from high availability of wood in the region, low energy costs, and good access to railways, ports, and highways.

The completion of the transaction is subject to verification of customary conditions, including the approval by a foreign antitrust authority. Once approved, the asset acquisition will occur upon closing, with the price subject to typical economic and operational adjustments for this type of transaction. The agreed-upon value does not materially impact Suzano's financial leverage or debt levels.