Chilean company Arauco acquires US$ 245 million worth of assets in Mexico
Arauco, a Chilean producer of pulp, timber, construction materials and composite panels, announced the acquisition of US$ 245 million worth of assets in Mexico from its rival Grupo Masisa S.A. in order to strengthen its presence in North America.
The operation, which includes three industrial complexes located in Chihuahua, Durango and Michoacan with a combined installed capacity of 739,000 cubic meters a year.
In terms of production, the complexes include three particleboard (PB) lines with an annual installed capacity of 519,000 cubic meters and a medium-density fiberboard (MDF) panel line of 220,000 cubic meters a year. In addition, there are three tree farm licenses (TFL), a resin plant, and a veneer line.
“This action is part of our expansion plan that aims to position Arauco as a global company. With this acquisition, we will be extending our presence in the North American panel market, where we see trends of continued market growth for this type of product, focusing on residential and commercial furniture, and industrial markets”, said Matias Domeyko, Arauco CEO.
It should be noted that the completion of this transaction is subject to a number of prior conditions that are customary for this type of agreement. One of the most important conditions is the authorization of Mexico’s Federal Economic Competition Commission (COFECE).
It is estimated that the transaction will be completed during 2018 – this being the second recent transaction conducted with Masisa. In September 2017, Arauco invested US$ 103 million to purchase two Masisa panel mills in Rio Grande do Sul and Paraná Brazil; with an annual installed capacity of 800,000 cubic meters a year.
After the purchase of Masisa’s three plants in Mexico, Arauco will become the world’s second-largest wood panel producer, with installed capacity of more than 10 million cubic meters of panels, the company said.