Mercer International Inc, the global pulp company, announced on 12 April that it has completed, through its wholly owned subsidiary Mercer Timber Products GmbH, its previously announced agreement to acquire substantially all of the assets of one of Germanys largest sawmills and a bio-mass power plant, near Friesau, Germany, for approximately US$55.1 mn plus defined working capital of approximately US$6.5 mn
In connection with the Acquisition, Mercer announced that it has also successfully replaced the existing EU€25 mn (approx US$30 mn) revolving working capital facility of its subsidiary, Zellstoff-und Papierfabrik Rosenthal GmbH, with a new EU€70 mn (approx US$85 mn) joint revolving credit facility for Zellstoff-und Papierfabrik Rosenthal and Mercer Timber Products. The New Facility is available to both Zellstoff-und Papierfabrik Rosenthal and Mercer Timber Products, with Mercer Timber Products's borrowings not to exceed EU€45 mn (approx US$55 mn) 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 per cent, per annum.
Mr. David Gandossi, Mercer's Chief Executive Officer, stated: "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."
