The transaction will be financed by a $100m capital increase, with the standalone particleboard plants priced at $54.2m plus working capital. The acquisition is subject to the final approval of the Mexican regulatory bodies.

Masisa announced that its Mexican subsidiary, Masisa Mexico, agreed with Grupo Kuo and its subsidiaries Arrendadora Rexcel SA and Rexcel SA de CV, to buy two particleboard plants with total capacity of 460,000m3 and related assets in Mexico.

The other assets include melamine lines, impregnation and printing lines, a 24,000 ton capacity resin plant, laminated lines, land, related brands, and all assets that Grupo Kuo operates through its affiliate, Rexcel. These assets are located in Lerma, Zitacuaro and Chihuahua, in Mexico.