Resolute to Sell Fairmont, West Virginia, Recycled Pulp Mill
Company Press Release
Resolute Forest Products Inc. (“Resolute”) announced that it has entered into a definitive asset purchase agreement with ND Paper LLC (“ND Paper”), a subsidiary of Nine Dragons Paper (Holdings) Limited (“Nine Dragons”), for the sale of its Fairmont, West Virginia, recycled bleached kraft pulp mill, for $55 million plus certain elements of working capital, payable in cash.
Nine Dragons is primarily engaged in the production and sale of a broad variety of packaging paperboard products, including linerboard, high-performance corrugating medium, coated duplex board, as well as recycled printing and writing paper and specialty paper. In addition to nine paper mills operating in Asia, Nine Dragons, through its wholly-owned subsidiary ND Paper, also operates two U.S.-based facilities in Wisconsin and Maine.
ND Paper has agreed to offer employment to Fairmont mill employees, effective upon closing of the transaction, which is expected within the next two months.
“We are proud of the progress we have made together with the mill employees over the years to improve the Fairmont operation,” said Yves Laflamme, president and chief executive officer of Resolute. “We are pleased that the local community and broader region of the state will continue to benefit from the economic and social impact of the mill’s operation.”
“Proceeds from this asset sale will enable us to further increase liquidity, and continue to improve our balance sheet and financial flexibility,” added Laflamme. “Over the coming days, we will communicate with our customers to discuss the transition of supply as we seek to optimize our recycled bleached kraft pulp business at our Menominee, Michigan facility.”
BMO Capital Markets is acting as Resolute’s financial advisor on the transaction. Davies Ward Phillips & Vineberg LLP and Jackson Kelly PLLC are acting as Resolute’s legal counsels.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including market pulp, tissue, wood products, newsprint and specialty papers, which are marketed in close to 70 countries. The company owns or operates some 40 manufacturing facilities, as well as power generation assets, in the United States and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. The shares of Resolute Forest Products trade under the stock symbol RFP on both the New York Stock Exchange and the Toronto Stock Exchange. Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices.
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Source: Resolute Forest Products Inc.