Norske Skog Declared Agreement to Sell Boyer Mill

SEATTLE (Scrap Monster):  Norske Skog, a Norwegian pulp and paper manufacturer, declared that it has agreed to sell Boyer Capital Pty Ltd its Boyer mill in Tasmania. The deal has an enterprise value of about NOK 190 million.

The purchase price is based on an enterprise value of approximately NOK 190 million and is subject to customary adjustments for cash, debt and working capital. Subject to standard closing conditions, the transaction is anticipated to be finalized in the current year's first quarter.

The Norske Skog Boyer plant can produce 135,000 tonnes of Light Weight Coated (LWC) magazine paper and 150,000 tonnes of newsprint. There are a lot of prospects for future development on the 565-hectare property. There are about 300 workers at the mill. Over the last three years, the mill has also provided about NOK 60 million in EBITDA.

After the sale, Norske Skog will be the owner of four mills in Europe that can produce 760,000 tonnes of containerboard, 840,000 tonnes of newsprint, 200,000 tonnes of SC magazine paper, and 265,000 tonnes of LWC magazine paper.

The mill is eager to carry on with its activities under the new ownership, according to Patrick Dooley, Managing Director of Norske Skog Boyer. He added that it will investigate potential future growth at the mill site in close collaboration with the new owners.

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