Resolute Sells Catawba, South Carolina Paper and Pulp Mill For $300M

SEATTLE (Scrap Monster): Resolute Forest Products, Inc. (RFP) has entered into a definitive agreement with Ontario, California-headquartered New-Indy Containerboard, LLC towards sale of its paper and pulp mill in Catawba, South Carolina. The deal price of around $300 million consists of $260 million in cash plus assumption by the buyer of about $40 million of largely pension-based liabilities. The transaction is subject to customary closing conditions and is expected to close by end-2018.

Yves Laflamme, president and chief executive officer of Resolute stated that New-Indy’s proposal to take on the upgrades at the facility will lead to significant improvement in the facility’s earnings potential. He hoped that the mill will continue to deliver economic and social benefits to local community. The proceeds from the asset sale will be utilized to further reduce its net debt and improve shareholder value, Laflamme said. RFP will continue to explore high-return strategic growth opportunities to its core business, in line with the company’s transformation strategy.

Under the terms of the agreement, all the 460 people currently working at the facility will be offered employment by New-Indy, upon closing of the transaction.

Earlier in August this year, RFP had announced sale of its recycled pulp mill in Fairmont, West Virginia to ND Paper LLC, a subsidiary of Chinese Nine Dragons Paper (Holdings) Limited for a sum of $70 million.