HIT Torgau owns and operates an integrated timber processing facility with wood pallet, lumber, biofuel and energy production.
Consideration of €270 million (approx. $275.4 million), inclusive of forecasted net working capital of approximately €43 million (approx. $43.9 million).
HIT is the world’s largest producer of EPAL wood pallets used for shipping and, in 2021, sold 18 million transport pallets of all kinds and over 1 million cubic meters of traditional lumber products. Sawmill residuals are used to produce biofuels in the form of wood pellets and briquettes. Hit has a total green lumber sawmill capacity of approximately 410 MMfbm and electricity generation capacity of 15MW.
For fiscal year 20211, HIT had:
- net revenues of €227 million, including approximately €169 million from pallets, €17 million from other lumber / wood / milled products, €27 million from biofuels and €12 million from electricity; and
- net Income of €31 million and Adjusted EBITDA of €68 million.
For the first quarter of 2022, HIT had revenues of €72 million, net income of €12 million, and Adjusted EBITDA of €22 million1.
Post-acquisition, Mercer will be the largest German pallet producer.
The transaction is immediately accretive, advancing our long-term strategy of growing our timber processing and wood production business and creating meaningful synergies.
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