Mercer International completed, through its wholly owned subsidiary Mercer Timber Products (MTP), its previously announced agreement to acquire substantially all of the assets of one of Germany’s largest sawmills and a bio-mass power plant near Friesau, Germany, for approximately $55.1 million plus defined working capital of approximately $6.5 million.

In connection with the acquisition, Mercer replaced the existing €25 million ($26.6 million) revolving working capital facility of its subsidiary, Zellstoff-und Papierfabrik Rosenthal (ZPR), with a new €70 million ($74.4 million) joint revolving credit facility for ZPR and MTP.

According to a related 8-K filing, Unicredit Bank served as agent, lead arranger, issuing bank and security agent.

The new facility is available to both ZPR and MTP, with MTP’s borrowings not to exceed €45 million ($47.9 million) thereunder, has a five-year term, is secured by a first ranking security interest on the inventories, receivables and accounts of the borrowers and accrues interest at a rate of Euribor plus 2.95% per annum.

David Gandossi, Mercer CEO, said, “We are excited with the acquisition of the Friesau Facility and welcome its employees to the Mercer Group and look forward to working together to enhance value for all of our stakeholders.”