Brazilian paper and packaging producer Klabin has agreed to establish a forestry special-purpose company (SPE) in Paraná, Brazil, with an undisclosed institutional investor.

The investor will contribute R$1.2 billion in cash, while Klabin will contribute forestry assets covering 37,300 hectares and retain control of the new company.

The deal

Announced on 6 November, the partnership involves the creation of an SPE whose main purpose will be the commercial exploitation of timber in Paraná.

Klabin will contribute the forestry assets to the new company, while the institutional investor will make its R$1.2 billion cash contribution at the closing of the transaction.

The company has not disclosed the investor's identity or the respective ownership stakes in the SPE. Completion remains subject to customary conditions precedent, including approval from the relevant regulatory authorities.

Background

The transaction follows a capital-structuring approach previously used by Klabin in its forestry operations, bringing institutional investment into special-purpose companies while retaining control.

A previous example is Project Plateau, announced in October 2024, which involved four forestry special-purpose companies established with a Timber Investment Management Organization (TIMO). Under that arrangement, the investor committed R$1.8 billion in cash, while Klabin contributed forestry assets and retained control of the companies.

Under Project Plateau, Klabin also retained operational involvement through service agreements covering harvesting and silviculture. In addition, it secured preferential rights to purchase the wood produced by the SPEs under a wood-supply agreement.

For the new partnership, however, Klabin has not disclosed whether similar operational arrangements or wood-supply agreements will apply.

Klabin said the transaction reinforces its commitment to capital-allocation discipline and sustainable value creation for stakeholders.

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