Mercer International completed acquisition of assets of one of the largest sawmills in Germany

Mercer International, a global pulp manufacturer completed its previously announced agreement to acquire substantially all of the assets of one of Germany’s largest sawmills and a bio-mass power plant, near Friesau, Germany, for approximately USD 55.1 million plus defined working capital of approximately USD 6.5 million. The transaction was managed through Mercer’s wholly owned subsidiary Mercer Timber Products GmbH (MTP).

Additionally, in connection with the acquisition, Mercer announced that it had also successfully replaced the existing EUR 25 million revolving working capital facility of its subsidiary, Zellstoff-und Papierfabrik Rosenthal GmbH (ZPR), with a new EUR 70 million joint revolving credit facility.

According to the announcement, the new facility is available to both ZPR and MTP. MTP’s borrowings not to exceed EUR 45 million thereunder, has a five-year term, is secured by a first ranking security interest on the inventories, receivables and accounts of the borrowers and accrues interest at a rate of Euribor plus 2.95% per annum.

Mr. David Gandossi, Mercer’s Chief Executive Officer, commented:

“We are excited with the acquisition of the Friesau Facility and welcome its employees to the Mercer Group and look forward to working together to enhance value for all of our stakeholders.”

Earlier Mercer International completed additional notes offering of USD 25 million.

About Mercer International Inc:

The company is a global pulp manufacturer. It operates three modern NBSK pulp mills in Germany and Canada with a consolidated annual production capacity of approximately 1.5Mt.

Source: Woodbizforum