Catalyst Paper to purchase NewPage's paper mills in Maine and Wisconsin
Catalyst Paper Corporation has entered into an Asset Purchase Agreement with NewPage Corporation, NewPage Wisconsin System Inc. and Rumford Paper Company to purchase the Biron paper mill located in Wisconsin and the Rumford pulp and paper mill located in Maine, USA for consideration of $74 million, subject to certain adjustments.
ByLesprom Network
Oct 31, 2014. /Lesprom Network/. Catalyst Paper Corporation has entered into an Asset Purchase Agreement with
NewPage Corporation, NewPage Wisconsin System Inc. and Rumford Paper Company to
purchase the Biron paper mill located in Wisconsin and the Rumford pulp and
paper mill located in Maine, USA for consideration of $74 million, subject to
certain adjustments, as the company said in the press release received by
Lesprom Network.
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.
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