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 foodservice packaging segments in the region.
The transaction is valued at US$110 million and includes two mills: one in Pine Bluff, Arkansas, and another in Waynesville, North Carolina. Both manufacture liquid packaging board and cupstock.
Subject to final regulatory approval expected later this year, these assets will add approximately 420,000 metric tons 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 U.S. 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.
“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,” said Fabio Almeida, Executive Vice President of Paper and Packaging at Suzano.
“The sale of Pine Bluff and Waynesville concludes the strategic alternatives review process,” said Michael King, President and Chief Executive Officer of Pactiv Evergreen. “This Transaction is consistent with our disciplined focus on value creation, and we expect it to reduce the capital intensity of our business, improve our cash flow profile and further strengthen our balance sheet.”
