Domestic M&A Deal of the Year: Suzano’s acquisition of Fibria
What do you do with two of the largest, and lowest cost, players in the pulp and paper industry in one of the top markets in the world? How about a blockbuster deal to merge them into not only a domestic Brazilian leader but the world’s largest wood pulp producer?
In January 2019, Suzano Papel e Celulose SA, closed the deal to purchase its larger domestic rival Fibria Celulose SA, raising more than $9 billion in cash for a deal that ended up being close to $11 billion.
“One of the key aspects here was to find the right balance between cash and equity to make the deal possible,” Marcelo Bacci, chief financial officer of Suzano, the company’s new trade name, tells LatinFinance.
Bacci highlights how market conditions in March 2018 allowed Suzano to raise the cash to entice Fibria’s controlling shareholders to accept a buyout bid. Adding an additional $9 billion to the debt pile has created the motivation to reach cost saving targets.
When the deal was announced, the synergies from the merger were expected to be an annual BRL800 million to BRL900 million ($192 million to $216 million), with the merged company achieving 40% of that target in the first year and 90% by year two. As of late 2019 Suzano was on track for the first year, Bacci says.

Award accepted by: Claudio Pitchon, Head of Corporate & Investment Bank Brazil, Mizuho Americas
Domestic M&A Deal of the Year: Suzano’s Acquisition of Fibria
Date: January 2019
Size: US$ 9.2 billion
Supporting Financial Institutions: Itau BBA; J.P. Morgan; BNP Paribas; Rabobank; Mizuho; Bradesco; Morgan Stanley; Riza Capital
Supporting Law Firms: Cescon, Barrieu, Flesch & Barreto; Cleary Gottlieb; Freshfields Bruckhaus Deringer; Barbosa Mussnich & Aragao; VMA Advogados; Pinheiro Guimaraes; Mattos Filho
All supporting financial institutions and law firms were transmitted to LatinFinance by the award category winners. For updates please email awards@latinfinance.com