ArborGen Expands Footprint in Brazil Acquiring a Nursery

ArborGen Expands Footprint in Brazil with Nursery Acquisition
10 October 2024 - ArborGen Holdings Limited (NZX: ARB) (ArborGen or the Company) is pleased to
announce that it has signed a memorandum of understanding to acquire the Eco Empreendimentos
nursery in Piauí, Brazil, for approximately USD$2.5m, which will utilize seller financing and cash
already in Brazil to fund the transaction. Settlement is expected on 1 November 2024, subject to
conditions being met.
The acquisition strengthens ArborGen’s presence in Brazil’s Northeastern region, which is becoming
one of the most strategic areas for forestry in Brazil. ArborGen also benefits from its established
experimental research network in the region, positioning the company to lead the growth of forestry
in the Northeast.
The Eco Empreendimentos nursery has an annual production capacity of approximately 15 million
eucalyptus seedlings, with the potential to expand to 18 million seedlings with minimal investment.
This will increase ArborGen’s internal production capacity in Brazil to approximately 94 million
seedlings per annum, comprising 77 million eucalyptus and 17 million pine seedlings.
Chief Executive Officer of ArborGen, Justin Birch, said: “This acquisition aligns with ArborGen’s
strategy to expand our presence in Brazil, and marks an important milestone as we celebrate 10
years of commercial operations in the country. We have a long-term commitment to the region and
to developing high-performance forests, which are critical to the future of the forestry industry.”
ENDS

Authority for this announcement:
Justin Birch, President and CEO, ArborGen Holdings Limited
For more information, please contact:
Jackie Ellis, Ellis and Co e: jackie@ellisandco.co.nz, t: +64 27 246 2505

ArborGen
ArborGen is the leading supplier of advanced seedling genetics to the global commercial forestry
industry. Employing state-of-the-art technology, ArborGen is developing high-value products that
significantly improve the productivity of a given acre of land by enabling our customers to grow trees
that yield more wood per acre with greater consistency and quality in a shorter period of time. For
more information, please visit ArborGen’s website at www.arborgen.com