Jan 08, 2015. /Lesprom Network/. Catalyst Paper Corporation has completed the acquisition of the Biron paper mill located in Wisconsin and the Rumford pulp and paper mill located in Maine, USA, from NewPage Corporation, NewPage Wisconsin System Inc., and Rumford Paper Company. The cash payment made on closing was $62.4 million, after giving effect to an adjustment under the purchase agreement based on estimated working capital at closing, and the final purchase price is subject to certain additional post-closing adjustments, as the company said in the press release received by Lesprom Network.

"This acquisition represents a new chapter in the history of Catalyst Paper," says Joe Nemeth, President and CEO. "With the addition of the Rumford and Biron mills, Catalyst becomes a larger and stronger company with five facilities across North America and an estimated production capacity of 2.1 million tons of paper and 500 thousand tons of pulp. Catalyst is now the only producer in North America with manufacturing facilities in the West, Midwest and East, and has an enhanced product suite to effectively meet global customer needs."

The acquisition was financed through advances under Catalyst's ABL Credit Facility. Catalyst entered into an amendment to its ABL Credit Facility to increase the maximum amount of credit available thereunder from CDN$175 million to CDN$225 million.

Catalyst Paper Corporation manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.