Rayonier Advanced Materials Announces Sale of Matane, Quebec Pulp Mill
Rayonier Advanced Materials Inc. (the “Company”) announced that it has entered into an agreement to sell its Matane, Quebec pulp mill and related assets to Sappi Limited, a global diversified wood fiber company, for a purchase price of approximately US$175 million. The mill produces approximately 270,000 metric tons of high-yield pulp and sells the product globally for use in manufacturing paperboard, packaging, printing, and writing paper. The Matane mill was acquired by the Company as part of its acquisition of Tembec Inc. in November of 2017. The Company will continue to manufacture and sell approximately 240,000 metric tons per year of high-yield pulp out of its Témiscaming facility.
The Company is continuing its previously-announced review of its commodity asset portfolio and will provide information on any additional actions when this review is concluded.
“As part of our portfolio evaluation, the sale of the Matane mill allows us to divest a non-core asset while providing our stockholders with fair value,” said Paul G. Boynton, Chairman, President and Chief Executive Officer of Rayonier Advanced Materials. “I want to personally thank the Matane management team and employees for their dedicated work for Rayonier Advanced Materials. We wish them well as they begin a new chapter with Sappi.”
The Matane transaction, which is expected to close in the fourth quarter, is subject to customary closing conditions, including receipt of regulatory approvals.
About Rayonier Advanced Materials
Rayonier Advanced Materials is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in cell phones, computer screens, filters and pharmaceuticals. The Company also manufactures products for lumber, paper and packaging markets. With manufacturing operations in the U.S., Canada and France, Rayonier Advanced Materials employs approximately 4,200 people and had revenues of US$2.1 billion in 2018. More information is available at www.rayonieram.com.
A global leader in paper, paper pulp and dissolving wood pulp solutions, Sappi Limited (listed and in the Top 40 on the JSE), is headquartered in Johannesburg, South Africa; has over 12,000 employees; manufacturing operations on three continents, in seven countries (nine mills in Europe, three mills in America and four mills in South Africa) and customers in over 150 countries worldwide. Sappi works closely with customers to provide relevant and sustainable paper, paper pulp, dissolving wood pulp and biomaterial products and related services and innovations. Our market-leading range of paper products includes: coated fine papers used by printers, publishers and corporate end-users; casting release papers used by suppliers to the fashion, textiles, automobile and household industries; and in our Southern African region newsprint, uncoated graphic and business papers, premium quality packaging papers and paper grade pulp. Our dissolving wood pulp products are used worldwide by converters to produce viscose fibre, pharmaceutical products as well as a wide range of household and consumer products.
Eric Johnson – Media Contact – (904) 357-9134
Source: Rayonier Advanced Materials, Inc.