May 15, 2008. /Lesprom.com/. Neenah Paper announced that it had signed a definitive agreement to sell its Pictou pulp mill to Northern Pulp Nova Scotia Corporation ("Northern Pulp"), a new operating company of Atlas Holdings and Blue Wolf Capital Management. The mill, located in Nova Scotia, Canada consists of one machine with annual capacity of approximately 270,000 metric tons of pulp. In 2007, approximately 90 percent of the mill's production was northern bleached softwood kraft pulp. The sale agreement pertains only to the Pictou mill and associated woodlands operations; Neenah Paper will retain the 500,000 acres of timberlands that it owns in Nova Scotia. Neenah expects to pay approximately $15 to $20 million to Northern Pulp to assist the new company in its transition to stand-alone status. Payments will be made in two installments, the first at the time of closing and the second in the third quarter. Final amounts will be subject to adjustments based on levels of working capital, capital spending and costs incurred during the recent mill annual maintenance down. As part of the terms of the sale, Northern Pulp will assume all assets and liabilities associated with the Pictou operations, as well as existing customer contracts, supply agreements, labor agreements and pension obligations. In addition, Northern Pulp and Neenah Paper have agreed upon a market-based fiber supply agreement to ensure ongoing fiber supply to the mill. The transaction is expected to close in the 2Q and is subject to customary closing conditions, including various governmental consents, pension transfer requirements and certain contractual assignments. Neenah Paper is a global manufacturer of premium, performance-based papers and specialty products used in a variety of applications including filtration, printing and writing, and as backing and component materials for many specialized industrial and consumer applications. Northern Pulp Nova Scotia Corporation is a new operating company of Atlas Holdings LLC and Blue Wolf Capital Management LLC to own and operate the Pictou pulp mill.