Catalyst intends to finance the acquisition through a combination of advances under its revolving asset-based credit facility, the maximum amount of which is to be increased in connection with the transaction.
"With this transaction, Catalyst will be better able to serve new and existing customers through operational synergies and a more diversified and higher value suite of products," said Joe Nemeth, President and CEO of Catalyst.
"Our acquisition of these U.S. pulp and paper mills, once complete, will support our efforts to improve our balance sheet and enhance the Company's long-term competitiveness," added Nemeth.
Catalyst manufactures diverse specialty mechanical printing papers, newsprint and pulp.
