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Mercer completes German sawmill and biomass plant acquisition

Mercer International Inc., has announced that it has completed the acquisition of the Klausner Holz Thüringen GmbH sawmill and biomass combined heat and power plant (CHP) near Friesau, Germany.

US-headed northern bleached softwood kraft (NBSK) producer Mercer International Inc., announced April 12 that it has completed, through its wholly-owned subsidiary Mercer Timber Products GmbH (MTP), its previously announced agreement to acquire substantially all of the assets of Klausner Holz Thüringen one of Germany’s largest sawmills and a biomass combined heat and power (CHP) plant, near Friesau, Germany, for approximately US$55.1 million plus defined working capital of approximately US$6.5 million.

In connection with the acquisition, Mercer announced that it has 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 for ZPR and MTP.

The new credit facility is available to both ZPR and MTP, with 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 percent per annum.

– 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, said Mercer’s Chief Executive Officer David Gandossi in a statement.

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