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CMPC Purchases Brazilian Tissue, Diaper Maker


Sepac makes 135,000 tons of toilet paper and 175 million diapers a year.


Chile's CMPC tissue paper subsidiary Softys announced on Tuesday that it has reached an agreement to buy Paraná, Brazil-based Sepac for a little over $300 million. The deal will create the largest company in this segment in Brazil.


Sepac was founded in 1974 and owns tissue brands such as Duetto, Paloma, Stylus and Maxim as well as a self-named diaper brand. The company has an annual production capacity of 135,000 tons of tissue paper and 175 million diapers per year. Sales in 2019 are expected to total $200 million.


"The merger of the two companies will consolidate Softys as the largest operator of the tissue industry in Brazil, highlighting Sepac's presence in the south of the country that is complemented by Softys' current relevance in the central states," CMPC said in a statement. "This is an operation consistent with our goal to grow in markets with high development potential for the tissue business, such as Brazil," said CMPC Group Chairman Francisco Ruiz-Tagle in the statement. 


Softys has been in Brazil since 2009 and has operations in São Paulo, with a capacity to produce 145,000 tons of tissue paper. The company diversified into diapers in 2017 with a Sepac brand.


CMPC Purchases Brazilian Tissue, Diaper Maker


CMPC Purchases Brazilian Tissue, Diaper Maker
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