Though mergers and acquisitions vary in popularity, companies have used them to help expand their businesses to beat out competition and support both organizations grow.
Eucatex is no different in that aspect. In January 2018, Flavio traded one of Eucatex’s farms for a manufacturing plant in Botucatu. Maluf then used the facility as a means of creating raw materials by beating eucalyptus trees into pulp and turning them into fiberboard for their other products.
With the acquisition of the new plant, according to Favio himself, Eucatex’s current production of “fiber sheets” will be raised by 70 percent. The new facility will also raise paint production by 30 percent and paper printing by 40 percent. View flaviomalufofficial.com
The trade was closely watched by CADE, the Administrative Council for Economic Defense, a Brazilian government agency. This is to make sure that the deal was fair for both companies as well as ensuring that Eucatex would not become too large and eliminate their substantial competitors.
As a result of the trade, jobs related to manufacturing the products of the newly acquired plant raised, as well as creating an influx of jobs to Eucatex. The overall output of all Eucatex products will reach more stores in Brazil as well as around the world. The trade helped increase the Brazilian economy substantially.
In recent quarterly financial reports, the Brazilian company Eucatex did exceptionally well. Flavio’s company brought in 318.3 million Brazilian Reals in revenue and 18.6 million in net earnings. This is the equivalent to 85.85 million and 5.02 million United States Dollars.
Flavio Maluf was born into a wealthy family, but that is not his defining factor. Flavio graduated with a Mechanical Engineering degree from the Armando Alvares Penteado Foundation. Maluf then used that degree to help build his company Eucatex.
The idea for Eucatex came from his great-grandfather Salim who owned a prominent sawmill in Latin America in the 1940’s. His father and uncle in the 60’s then turned the sawmill forests into a wood fiber lining industry. The name Eucatex comes from the type of wood that the company uses, Eucalyptus. Read More: http://economia.estadao.com.br/noticias/releases-ae,conheca-com-flavio-maluf-os-profissionais-mais-requisitados-pelas-startups-em-tempos-atuais,70001683019