Sappi Limited had signed an agreement to acquire the 270,000 tons per year Matane high yield hardwood pulp mill from Rayonier Advanced Materials for $175 million, as the company said in the press release received by Lesprom Network.
The transaction will be funded through internal cash resources and available debt facilities. The transaction is conditional on the approval from certain competition authorities. Sappi expects the acquisition to be completed during the fourth calendar quarter of 2019.
Commenting on the transaction, CEO of Sappi Limited, Steve Binnie, said: “This acquisition will provide Sappi with both cost reductions and decreased volatility at a very competitive price per ton of pulp. Indeed, this is a more cost effective and efficient approach than building additional internal capacity for our North American and European mills. I am very pleased that we have taken another significant step towards realising our 2020Vision goal.”
Sappi Limited is a leading global producer of dissolving wood pulp, speciality and packaging papers, graphic paper and biomaterials.
