IMAP advised Masisa S.A. on the sale of their industrial operation in Argentina to EGGER Group

As a result of its strategic plan to focus on the forestry business and in the higher value-added distribution of wood panels in the Andean Region, Central and North America and other export markets, Masisa S.A. Chile decided to start the sale process of its industrial assets in Argentina, Brazil and Mexico.

As part of this process, Masisa closed the sale of its industrial unit located in Concordia, Argentina, which has facilities for producing and coating chipboard and MDF board, to Austrian wood-based material manufacturer EGGER Group.

With a lamination capacity of 274,000 m3/year, the industrial unit reached sales of USD $131 million in 2016. EGGER also took over the established Masisa Placacentro Argentinian distribution network, which is independently run by 43 partners.

Both companies are securing future growth through market diversification and new application opportunities. With the closing of the transaction, EGGER is continuing the internalization of the group in order to become a key player in South America.

About Masisa S.A. Chile

With an annual turnover of USD $960 million in 2016, Masisa is one of the leading manufacturers and distributors of wood-based products in Latin America. Listed on the stock exchange of Santiago de Chile and employing some 9,000 employees, the company has 10 production sites for chipboard and MDF boards in Chile, Argentina, Brazil, Venezuela and Mexico, a franchise-esque distribution network with 332 retails stores (Placacentro) and a forest enterprise with 246 thousand hectares of useful woodland.

About EGGER Group

Egger, an Austrian company, is one of the main players in the world in the wood panel industry. Focused mainly in the European markets, this acquisition is the companys  first venture for the companyinto the Latin American market. The company has 18 production plants in Europe and 21 sales offices around the world and employees close to 9,000 employees around the globe. The company achieved revenues of EUR €2.4 billion in the fiscal year 2016/2017

With EGGER, IMAP was able to find a strategic investor for the Masisa business in Argentina, who wants to further expand their local capacities, while relying on a strong regional presence.

IMAP Colombia, together with UBS Securities LLC, acted as financial advisors to Masisa in this transaction. The transaction has an Enterprise Value of USD $155 million and EV/Revenue Multiple of 1.2x. IMAP Colombia was supported by IMAP in Germany.

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