Mercer International Inc. Expands Solid Wood and Extractives Operations
August 14 2018 - 4:15PM
Mercer International Inc. (Nasdaq: MERC) (the
"
Company") today announced that it has entered
into an agreement to acquire the Santanol Group, which owns and
leases approximately 2,500 hectares of existing Indian sandalwood
plantations and a processing and extraction plant in North West
Australia.
The proposed acquisition will expand the
Company's operations to include plantation harvesting and the
production of solid wood chemical extractives.
Indian sandalwood is a highly prized species and
its harvested wood is sold for religious and decorative uses in
Asia. In addition, oil is extracted from the wood and
processed and sold by Santanol for several uses, including
fragrances and cosmetics.
The proposed acquisition is subject to customary
conditions, including, among others, receipt of requisite
regulatory approval, and is expected to complete in or about the
end of the third quarter of 2018.
Mercer International Inc. is a global forest
products company with operations in Germany and Canada with
consolidated annual production capacity of 1.5 million tonnes of
NBSK pulp and 550 million board feet of lumber. To obtain further
information on the company, please visit its web site at
http://www.mercerint.com.
The preceding includes forward looking
statements, including statements regarding the expected completion
of the proposed acquisition, our ability to integrate the Santanol
Group with our existing business and realize upon potential
synergies and capital upgrade opportunities. Words such as
"expects", "anticipates", "projects", "intends", "designed",
"will", "believes", "estimates", "may", "could" and variations of
such words and similar expressions are intended to identify such
forward-looking statements. Actual results and outcomes may differ
materially from what is expressed or forecasted in these
forward-looking statements. Such statements are qualified in their
entirety by the inherent risks and uncertainties surrounding future
expectations. Among those factors which could cause actual results
to differ materially are the following: uncertainties as to the
timing of completion of the proposed transaction, our ability to
obtain required consents and approvals in connection with the
transaction, we may not realize all or any of the expected
synergies, the plantations may not be integrated successfully with
our business or such integration may be more difficult,
time-consuming or costly than expected, capital upgrades may not
receive expected results, the highly cyclical nature of our
business, raw material costs, our level of indebtedness,
competition, foreign exchange and interest rate fluctuations, our
use of derivatives, expenditures for capital projects,
environmental regulation and compliance, disruptions to our
production, market conditions and other risk factors listed from
time to time in our SEC reports.
APPROVED BY: Jimmy S.H.
LeeExecutive Chairman(604) 684-1099 David M. GandossiChief
Executive Officer (604) 684-1099 |
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