Hengeler Mueller advises Lenzing Supervisory Board on joint venture with Duratex in Brazil

29. June 2018

The Austrian Lenzing Group (“Lenzing”), a listed international leading producer of specialty cellulosic fibers, and Duratex, a leading producer of industrialized wood panels headquartered in Sao Paolo, Brazil, announced that they agreed on the terms and conditions to form a joint venture to investigate building the largest single line dissolving wood pulp (DWP) plant in the state of Minas Gerais, close to Sao Paulo, Brazil.

Lenzing will hold 51 percent of the joint venture which will operate the mill, while Duratex’s share will be 49 percent. The estimated cash investment by the joint venture for the construction of the DWP mill is expected to be around USD 1 bn. The joint venture will supply the entire volume of dissolving wood pulp to the Lenzing Group. This step is an essential milestone in the group’s ambition to grow its specialty fibers business.

The closing of the transaction is subject to various conditions; inter alia, antitrust and final authority approvals.

Hengeler Mueller advised Lenzing’s Supervisory Board on the transaction together with the Austrian law firm Grohs Hofer (Elisabeth Stern). The Hengeler Mueller team included partners Annika Clauss and Frank Burmeister as well as associates Arvid Morawe and Xianrui Wang (all Corporate/M&A, Frankfurt). Cescon Barrieu advised on issues regarding Brazilian law. Lenzing’s Executive Board was advised by the Austrian law firm Binder Grösswang as well as the Brazilian law firm Veirano.