UPDATED As anticipated, Catalyst Paper Corporation's purchase of two US paper mills has now been confirmed, the company announced in a press release Wednesday, January 7.
A cash payment of $62.4 million US was made on closing and the final purchase price will be determined after post-closing adjustments have been made.
"This acquisition represents a new chapter in the history of Catalyst Paper," said 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."
Information on operation and production at the two mills wil be included in the company's first quarter report.
Purchase meets milestone
On the last day of 2014, Catalyst Paper Corporation announced an important milestone had been achieved in its anticipated acquisition of two US paper mills.
In the company’s press release, Catalyst stated it had been waiting for the US Department of Justice to file required paperwork paving the way to acquisition. Catalyst has made a bid to purchase the Biron paper mill in Wisconsin and the Rumford pulp and paper mill in Maine from NewPage Corporation, NewPage Wisconsin System Inc. and Rumford Paper Company.
The department of justice announced it had “filed a Proposed Final Judgment and a Hold Separate Stipulation and Order with the US District Court for the District of Columbia, embodying a consent settlement in connection with the proposed acquisition by Verso Paper Corp. of NewPage Holdings Inc.”
With this news, Catalyst will be able to proceed with the purchase, which should close this week, subject to the Verso transaction being completed and certain other closing conditions being met.
“This acquisition enhances our long-term competitiveness and is expected to make Catalyst a stronger company more effectively positioned for the future,” said Joe Nemeth, Catalyst president and CEO. “With the addition of the Biron and Rumford mills, Catalyst will be able to offer its new and existing customers a more diversified and higher-value product suite, complemented by our commitment to quality service focused on understanding and meeting our customers’ needs.”
