Two major manufacturers of construction materials in Brazil have decided to merge in order to supply their products and services to the community. Eucatexand Duratex recently announced their partnership citing that they share common interests and are willing to work together to exchange some resources. The business was valued at BRR 60 million and the proposal involves a binding contract that will later be approved by the relevant authority.
What Duratex Gets
In the partnership, Duratex will receive land plus forest assets from Eucatex. The forest asstes are geographically located in Bonito (SP). This is in proximity to Itapetininga, a facility managed by Eucatex. Without a doubt, this asset exchange is solely in line with the needs of Duratex and following its announcement of the deal, everything is coming to pass. Also critical to note is the fact that the facility will resume its operations as soon as the contract is approved. According to the management, this will occur in April 2018. Read more on Business and Economics about Flavio Maluf
What Eucatex Gets
On the other hand, Eucatex will receive a broad spectrum of manufacturing facilities and equipment to come up with fiberboard sheets. This facility is located in Botucatu , within Sao Paulo and through a strategic acquisition , it will be revived to facilitate more production of raw materials used for construction. At the same time, the transaction left out the MDF panel department that is located inBotucate as Eucatex proceeds with its normal operations. Also notable is the fact that the contracts will last seven years after the approval of CADE. Although the approval is pending, these lines will be operational until then.
Regarding the business deal, Maluf is proud to make the announcement and even give details of the partnership as well as the benefits. For starters, he says that the business deal will open additional employment opportunities to the people. Other than that, this deal will foster ties between Eucatex and Duratex. Moreover, the company will have additional production capacity for raw materials and other valuable items like print paper and wood panels. Flavio Maluf hopes to finalise the deal by the end of April 2018.
Flavio Maluf is the president of one Eucatex Company. He oversees the management of the firm in many aspects including fostering mergers and actualizing the final deal.