Jun 08, 2006. /Lesprom Network/. The New York-based buyer of International Paper's coated paper business does not anticipate any layoffs at two mills in Maine, AP reported. Apollo Management plans to make its first foray into paper mill ownership with the purchase of four mills, including mills in Jay and Bucksport, for $1.4 billion. Apollo doesn't anticipate layoffs at either of the Maine mills, said Steve Anreder of Anreder & Co. in New York City, a spokesman for Apollo Management. "Those are two core facilities and there are no current plans to change that going forward," he said. The transaction, which requires regulatory approval, is expected to close this summer. The purchase price includes about $1.37 billion in cash and a 10% stake in CMP Investments, the parent company of CMP Holdings LLC. If CMP's return on the investment hits certain marks, International Paper would have the right to receive additional payments. International Paper's coated paper division produces 2 million tonnes of coated paper annually for magazines, catalogs and newspaper inserts. The division last year generated $1.6 billion in sales. But that represented a small portion of IP's total sales of $25 billion. Amy Sawyer, an IP spokeswoman in Memphis, Tennessee, said workers at the affected mills should not be alarmed. There's no indication the new owners plan big changes. "The coated-paper business was a good business for International Paper and we think it'll continue to be a good business," Ms. Sawyer said. In Maine, the Jay mill has 1,000 workers and the Bucksport mill has about 800. The Jay mill buys wood from loggers and timberland owners in northern New Hampshire, as well as Maine. Eric Kingsley, a forest industry analyst based in Portland, said the Jay mill is one of North American's most efficient mills for producing magazine-grade coated-paper, and the Bucksport plant is in the middle range for the same product. The new company appears to be in position to make investments if it wants. "I think in the long term that this is likely to be positive for the mills," he said. Billionaire Leon Black and a group of investors founded Apollo in 1990. Since then, they have managed more than $13 billion in assets, buying and restructuring troubled companies and investing in growth-oriented firms. The new owner has deep pockets, and that bodes well, said Jack Cashman, commissioner of the Maine department of economic and community development. “I know they paid a pretty good price for it so they must have some plans that make sense to them”, Mr. Cashman said.