Fortress sells wallpaper business to focus on dissolving pulp
March 14, 2013 By Pulp & Paper Canada
Vancouver-based Fortress Paper Ltd. is selling its subsidiary, Dresden Papier, to Glatfelter for EUR160 million (CDN$213 million). Dresden Papier owns and operates the Fortress’ Dresden Mill which produces non-woven wallpaper base paper…
Vancouver-based Fortress Paper Ltd. is selling its subsidiary, Dresden Papier, to Glatfelter for EUR160 million (CDN$213 million). Dresden Papier owns and operates the Fortress’ Dresden Mill which produces non-woven wallpaper base paper at a facility in Germany.
The transaction is expected to close within the second quarter of 2013, but no later than June 30, 2013.
Chadwick Wasilenkoff, president and CEO of Fortress Paper, says the sale of the Dresden mill is “an important step in Fortress Paper becoming a more focused global leader in the dissolving pulp industry. The transaction was part of our strategic plan to achieve significant liquidity to enhance future growth opportunities.”
Glatfelter is a global manufacturer of specialty papers and fiber-based engineered materials. According to the company’s announcement of the purchase, “Dresden Papier has built a preeminent position in non-woven wallpaper materials – as both the cost and quality leader because of its innovative products, proprietary manufacturing techniques, and long-standing customer relationships.”
Fortress Paper operates internationally in three distinct business segments: dissolving pulp (two locations in Canada), specialty papers (Dresden) and security paper products (Landqart Mill in Switzerland). With the sale of the Dresden mill, Fortress will no longer operate in the specialty papers segment.
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