Softys consolidates as the largest tissue operator in Brazil

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Softys consolidates as the largest tissue operator in Brazil

August 23, 2019 - 05:55
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Softys, CMPC subsidiary that manufactures and commercializes tissue paper and personal care products, completed an important step in the consolidation of its operations in the Brazilian market with the acquisition of SEPAC.

The company established 45 years ago in the Paraná state has a recognized prestige both for its industrial facilities and for the presence of its commercial brands.

SEPAC is a Brazilian family-owned Tissue Company founded in 1974 by Dr. Joao Ferreira Dias with a portfolio that includes well-recognized brands among local consumers such as Duetto, Paloma, Stylus and Maxim. The company has an important tissue mill in the Paraná state with an annual capacity of 135 thousand tons of tissue paper, through 6 paper machines and 17 conversion lines. In addition, the company has 1 diaper conversion line with a capacity of 175 million units per year. Annual sales in 2019 are expected to be around USD 200 million.

“This is a very significant operation, which is in line with our objective of growing in markets with high development potential in the tissue business, such as Brazil”, stated CMPC CEO, Francisco Ruiz-Tagle.

“SEPAC is an excellent complement to the current operations of Softys Brazil, considering, as an example, their important presence in the south of the country and their diversified client portfolio”, explained Softys CEO, Gonzalo Darraidou.

In fact, the merger of both companies will consolidate Softys as the largest tissue producer in Brazil with SEPAC’s presence in the south of Brazil, which complements the current presence of Softys in the central states.

Softys has been present in the Brazilian market since 2009 and has industrial operations in the Sao Paulo state. The company currently has an annual capacity of 145.000 tons of tissue paper that will rise to 280.000 tons after the merger with SEPAC, positioning CMPC’s subsidiary as the largest tissue paper producer in Brazil. Softys Brazil sells tissue paper and personal care products, highlighting the penetration of its Elite and Sublime brands, among others.

The acquisition of SEPAC’s industrial operations and the commercial brands is subject to the approval of the antitrust authorities in Brazil and other common instances for this type of transactions.