Fortress Paper Ltd. has entered into a share and loan purchase agreement with Nanotech Security Corp., as purchaser, for the sale of all of the shares of its wholly-owned subsidiary, Fortress Optical Features Ltd.
The aggregate purchase price is up to $17.5 million, subject to a working capital adjustment and earn-out.
Chadwick Wasilenkoff, CEO of Fortress Paper, commented: “The sale of FOF is in line with our strategic plan to focus on the dissolving pulp and security paper products segments, enhance liquidity, as well as unlocking shareholder value.”
Wasilenkoff said Fortress originally acquired the optical features business to complement its security papers business at Landqart. Under the new owner, Fortress Optical Features will enter into an agreement to continue to supply optically variable thin film material to Fortress Paper’s Landqart Mill.
Fortress Paper operates in two distinct business segments: dissolving pulp at the Fortress Specialty Cellulose mill in Thurso, Que., and security paper products at the Landqart mill in Switzerland.