SUZBY - Fibria: 200% EBITDA Growth But Worrying Cost Expansion
I have written extensively - “Suzano: Pulp Giant Selling For 6x EV/EBITDA” - about the extremely cheap acquisition of Fibria (NYSE:FBR) by Suzano (OTCPK:SUZBY). The deal terms were outlined in my article on a potential merger arbitrage - "Fibria: No Longer A Bidding War, Merger Arbitrage Edition" - but the results in the long-hypothesis were all projected.
Results had seen massive improvement in Q4, but the trailing twelve month financials still pegged Fibria, and thereby Suzano, as an expensive commodity businesses.
Fibria recently reported their Q1 results.