Catalyst Paper has entered into a Sales and Purchase Agreement with ND Paper LLC, a wholly owned subsidiary of Nine Dragons Paper (Holdings) Ltd.(“ND Paper”) for the sale of Catalyst’s U.S. operations to ND Paper for $175 million.
Upon the closing of this transaction, ND Paper will acquire Catalyst’s Rumford, Maine and Biron, Wisconsin mills along with the associated staff at the company’s U.S. operations center in Dayton, Ohio. Catalyst has agreed to provide transition support services to ND Paper to assist with the development of certain operational and administrative functions required for the two U.S. mills.
The transaction is expected to close by the end of the 2Q upon the favorable vote of Catalyst's shareholders, with a meeting of shareholders scheduled for June 11, 2018.
Pursuant to a Lock-Up Agreement, the three major shareholders of the Company, aggregating approximately 87% of the outstanding shares, have agreed to vote in favor of the transaction at the meeting.
Catalyst Paper manufactures diverse papers such as coated freesheet, coated one side (C1S), flexible and industrial packaging, coated and uncoated groundwood, newsprint, directory, as well as market pulp.
