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Opportunity in the paper packaging industry in Brazil – Actual Ventures

Opportunity in the paper packaging industry in Brazil – Actual Ventures

PR Newswire

SAO PAULO, May 18, 2017 /PRNewswire/ — Brazil is one of the world’s major producers of paper packaging products, having maintained a regular average annual growth rate of approximately 3% in said sector over the years. However, in the last three years, the general economy underwent a major recession that has affected many companies in said sector, thereby enhancing the opportunity for strategic acquisitions and market consolidation. Currently, there are approximately 315 paper production plants in Brazil, 41% of which are owned by small/medium size Brazilian companies detrimentally affected by the recession.

Actual Ventures (PRNewsfoto/Actual Ventures)

The corrugated paper industry in Brazil produces approximately 3.7 Million tons per year of paper packaging, which represents a USD 2.7 billion market. 40% of the Brazilian paper packaging consumption is located in the States of Sao Paulo and Rio de Janeiro, which (i) joint population reaches 60 Million.; (ii) per capita GDP is USD 13 Thousand/year; and (iii) territorial extension is equivalent to that of the United Kingdom and Switzerland combined.

Actual Ventures is engaged in developing businesses in the paper packaging industry in Brazil and is prepared to assist parties interested in local acquisitions, either as seller or purchaser. Currently, Actual Ventures is the financial advisor of a local company dedicated to the production of packaging paper that operates continuously since 1980. Such company is set up at a favorable location in the State of Sao Paulo. It owns plant and land assets, necessary licenses and a solid record of continuous sales. It has no debts (neither with banks or suppliers, nor of tax or labor nature) or legal liabilities. Actual Ventures has performed an independent valuation of said company and has access to all relevant internal documentation.

Upon execution of a confidentiality agreement, Actual Ventures may provide all needed information about the above-mentioned company, as well as about other opportunities in the paper packaging sector, and can assist parties interested in the development of a working strategy for profitably taking a stake in said sector.

Actual Ventures is a Brazilian financial services advisor specialized in mergers and acquisitions and corporate finance in the middle market.

We are currently working on consolidation opportunities that represent 7% of the paper packaging industry. For this purpose, we seek an international investor willing to develop business opportunities in Brazil.

Arthur Cotrim, Managing Partner

Arthur Cotrim: