Catalyst Paper Assets to be Acquired by Paper Excellence
The sale is expected to secure nearly 1,500 forestry sector jobs in Crofton, Port Alberni and Powell River.
SEATTLE (Scrap Monster): B.C.-based Catalyst Paper Corporation announced that it has reached an agreement with Paper Excellence Canada Holdings, by which all of its assets will be acquired by Paper Excellence. The deal was announced Tuesday, October 9, but details are not revealed. The transaction is subject to regulatory review and final approval by the B.C. Supreme Court. Further, it also requires the approval of at least two-thirds of Catalyst shareholders. The transaction is expected to close by end-2018 or early Q1 2019.
Ned Dwyer, President and Chief Executive Officer, Catalyst Paper stated that the transaction, when completed, would benefit all of its stakeholders including its customers, employees, suppliers and the communities where it operates. Meantime, Brian Baarda, Chief Executive, Paper Excellence Canada noted that the company has been interested in Catalyst for the past several years. The acquisition will be an ideal fit for the company that has been steadily expanding its footprint, he added.
The sale is expected to secure nearly 1,500 forestry sector jobs in Crofton, Port Alberni and Powell River. Paper Excellence has already confirmed that it will run all of the purchased assets. In addition, it also plans to invest into the acquired mills so as to take best advantage of the rising demand situation.
The transaction covers Catalyst’s five Canadian mills in addition to the two in France, whose combined pulp production capacity is estimated at around 2 million tonnes.