Cleary Gottlieb is representing Vancouver-headquartered and Nasdaq-listed Mercer International Inc. (Mercer) in its €270 million acquisition of German Holzindustrie Torgau (HIT) from Deutsche Bank and funds advised by Orchard Global Asset Management (Orchard).
The acquisition adds to Mercer’s existing German wood business, which includes the operation of several sawmills. Following completion of the transaction, Mercer will be the largest pallet producer in Germany.
HIT is the world’s largest producer of EPAL wood pallets used for shipping. It owns several production facilities in Germany for pallets, garden products, and wood pellets and briquettes from sawmill residuals. HIT has been undergoing a restructuring since 2016. Deutsche Bank and Orchard provided financing to HIT and became its majority shareholders in 2020.