Resolute Completes Sale of Catawba, S.C., Paper and Pulp Mill

SEATTLE (Scrap Monster): Resolute Forest Products, Inc. announced successful completion of sale of its Catawba, South Carolina, paper and pulp mill to Ontario, California-headquartered New-Indy Containerboard, LLC. The two companies had signed an initial asset purchase agreement in early-October last year.

According to news release from Resolute Forest Products, the total purchase price was around $300 million, which comprised of $260 million in cash, prior to customary closing conditions plus an assumption of nearly $40 million of balance sheet liabilities, primarily pension-based liabilities. The majority of the proceeds from the asset sale will be used by the company towards improving its financial flexibility by way of repurchase of $225 million worth Senior Notes due in 2023.

Yves Laflamme, president and chief executive officer of Resolute stated that the company is pleased to have completed the sale transaction. He wished the New-Indy team every success in their proposed investment to further diversify the mill operations. Laflamme hoped that the community will continue to benefit from the mill’s economic and social impact. He also thanked the hard work and dedication of its employees toward the successful outcome.