Mercer International Inc. (NasdaqGS:MERC) has entered into an agreement to acquire HIT Holzindustrie Torgau GmbH & Co. KG from Deutsche Bank Aktiengesellschaft (XTRA:DBK) and funds advised by Orchard Global Asset Management LLP for $280 million on July 22, 2022. The aggregate purchase price is $260 million, inclusive of forecasted net working capital of approximately $43.8 million. The Transaction is structured on a “cash free and debt free” basis. Mercer intend to satisfy payment of the purchase price using our existing cash on hand and/or our revolving credit facilities. Mercer mandate with our current German bank agent for our existing $200 million Pan-German revolving credit facility to replace it with a new five-year facility with increased total availability of $310 million. For fiscal year 2021, HIT net revenues of $230 million, and net Income of $31.6 million and Adjusted EBITDA of $69.3 million. The transaction is immediately accretive, advancing our long-term strategy of growing our timber processing and wood production business and creating meaningful synergies. Transaction is subject to customary closing conditions, including receipt of requisite regulatory anti-trust approvals. The Transaction is expected to close in the third or early fourth quarter of 2022.

Sangra Moller LLP acted as legal advisor for Mercer. Heiko Gotsche, Stefan Süß, Susan Kempe-Müller, Jana Dammann de Chapto, Christian Jahn, Ludwig Zesch and Christoph Baus of Latham & Watkins Schön Nolte acted as Legal advisor to Deutsche Bank and Orchard Global Asset Management. Cleary Gottlieb Steen & Hamilton LLP acted as legal advisor to Mercer International Inc. (NasdaqGS:MERC).

Mercer International Inc. (NasdaqGS:MERC) completed the acquisition of HIT Holzindustrie Torgau GmbH & Co. KG from Deutsche Bank Aktiengesellschaft (XTRA:DBK) and funds advised by Orchard Global Asset Management LLP for $260 million on September 30, 2022. Houlihan Lokey UK Limited acted as financial advisor to HIT Holzindustrie Torgau GmbH & Co. KG. AS per the filling on May 4, 2023, Mercer International acquired $6.6 million in cash.