Aracruz to Buy Klabin's Riocell for 610.5 Million

June 2, 2003 - Brazilian pulp maker Aracruz Celulose, SA on Friday said that it has signed a preliminary contract to buy the Riocell pulp mill from Klabin SA for US $610.5 million.

Located in Brazil's southern state of Rio Grande do Sul, Riocell produces bleached eucalyptus pulp, most of which is exported, and has an annual installed capacity of 400,000 tons. The company also has 40,000 hectares of eucalyptus plantations located within an average radius of 85 km of the pulp mill.

Aracruz said that the purchase price is "still subject to final adjustments in the light of possible changes in Riocell's balance sheet prior to closing date."

Both parties expect all the agreement's conditions to be met within 30 days.

Aracruz is the world's largest producer of bleached eucalyptus kraft market pulp.

SOURCE: Aracruz Celulose