NEMUS SA

The Company

NEMUS SA and AP Servicos (NEMUS or the Company) is a forest and forest services company located in the state of Mato Grosso, Brazil. The Company is focused on the development and servicing of eucalyptus and teak plantations in Brazil. NEMUS had an existing position with approximately 2,400 hectares of planted eucalyptus and teak, but was seeking to identify and secure a strategic partner to expand its forestry investments and services in Brazil.

The Situation

Following a period of extensive study during which KPMG Corporate Finance coordinated detailed financial, environmental, and legal due diligence, NEMUS entered into exclusive negotiations with Phaunos Timber Fund Limited (Phaunos), which was identified as NEMUS’s preferred joint venture partner. Phaunos is a closed-end Guernsey investment company listed on the London Stock Exchange that invests in timberland and timber-related assets internationally and is managed by Four Winds Capital Management.

The Transaction

NEMUS retained KPMG Corporate Finance as its exclusive adviser throughout the joint venture negotiations. The process run by KPMG Corporate Finance resulted in the agreement and formation of a new joint venture company between NEMUS and Phaunos, EUCATECA SA, that will establish a significant holding in forestry assets in Mato Grosso and Minais Gerais, Brazil over the next several years. KPMG Corporate Finance advised NEMUS on all aspects of the deal including strategic positioning, valuation, and deal structure. KPMG Corporate Finance’s knowledge of cross-border transactions and experience in the forestry sector were fundamental to the success of this transaction.