SEATTLE (Scrap Monster): Madawaska, ME-headquartered Twin Rivers Paper Company announced plans to sell its lumber mill in New Brunswick, Canada to eastern Canadian lumber manufacturer and North American forest products leader Groupe Lebel. The definitive agreement to sell the Plaster Rock softwood lumber mill was signed by both parties.
The deal includes a long-term supply agreement, whereby Groupe Lebel will continue to supply by-product chips and biomass for use by Twin Rivers Paper’s pulp and cogeneration operations in Edmundston, New Brunswick. It must be noted that Groupe Lebel has been a long term supplier to the company.
The transaction is subject to provincial review and necessary regulatory approvals and is expected to close in Q1 next year. Stifel is the exclusive financial advisor for Twin Rivers in the transaction.
Tyler Rajeski, Chief Financial Officer of Twin Rivers Paper noted that the decision to sell the lumber operation is aligned with its strategy of investing in and growing its core business of specialty and kraft paper production. The transaction will have positive impacts on mill employees, business stakeholders, and the Plaster Rock community, he added.
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