CMPC expands operations with acquisition of SEPAC
Image: CC

CMPC subsidiary Softys has agreed to acquire family-owned tissue manufacturer SEPAC, a move it said will consolidate Softys as the largest tissue producer in Brazil.

SEPAC was established 45 years ago and has leading brands in the tissue paper segment including Duetto and Paloma.

It has a tissue mill in the Paraná state with an annual capacity of 135,000tpy of tissue paper, with six paper machines and 17 conversion lines.

In addition, it has one diaper conversion line with a capacity of 175m units per year.

Annual sales in 2019 are expected to be around US$200m.

Softys manufactures tissue paper and personal care products and the move consolidates Chilean pulp and paper company CMPC’s presence in Brazil.

CMPC chief executive Francisco Ruiz- Tagle said: “This is a very significant operation, which is in line with our objective of growing in markets with high development potential in the tissue business, such as Brazil.”

Softys chief executive Gonzalo Darraidou added: “SEPAC is an excellent complement to the current operations of Softys Brazil, considering, as an example, their important presence in the south of the country and their diversified client portfolio.”

The company added that the merger will consolidate Softys as the largest tissue producer in Brazil with SEPAC’s presence in the south of Brazil, which complements the current presence of Softys in the central states.

Softys has been present in the Brazilian market since 2009 and has industrial operations in the São Paulo state.

It currently has an annual capacity of 145,000tpy of tissue paper that will rise to 280,000tpy after the merger with SEPAC.

The acquisition of SEPAC’s industrial operations and the commercial brands implies an amount of BRL1,312m and is subject to the approval of the antitrust authorities in Brazil.