Aug 10, 2012. /Lesprom Network/. The ratings for Masisa S.A. remain unchanged following the company's recent announcement that it will acquire two Particle Board (PB) plants in Mexico, according to Fitch Ratings. The transaction will be financed by a $100 million capital increase, with the standalone PB plants priced at $54.2 million plus working capital. The acquisition is subject to the final approval of the Mexican regulatory bodies, as Fitch Ratings said in the press release received by Lesprom Network. Masisa announced that its Mexican subsidiary, Masisa Mexico, agreed with Grupo Kuo and its subsidiaries Arrendadora Rexcel S.A. and Rexcel S.A. de C.V., to buy two PB plants with total capacity of 460,000 cubic meter 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. The price for the acquisition is $54.2 million plus working capital, totaling an estimated of $63 million. The transaction is expected to be completed by the end of this year. This acquisition will result in Masisa Mexico representing nearly 18% of Masisa's total board capacity. Fitch views the proposed transaction as strategic as it improves Masisa's geographic diversification and market position in Mexico. Tangible synergies are expected to be achieved within the company's Mexican operations by the end of 2013. Masisa's ratings could be downgraded if debt increases, operating cash flow weakens, or the political environment in Argentina or Venezuela deteriorates further. A rating upgrade could follow a period of sustained debt reduction and corresponding improvement in credit metrics.