Neenah Paper has signed an agreement to sell its Pictou pulp mill to Northern Pulp Nova Scotia Corporation, a new o…
Neenah Paper has signed an agreement to sell its Pictou pulp mill to Northern Pulp Nova Scotia Corporation, a new operating company of Atlas Holdings and Blue Wolf Capital Management.
The Pictou facility is located in Nova Scotia, and consists of one machine with an annual capacity of roughly 270,000 metric tons of pulp. The agreement involves the mill and the woodlands operations associated with it. Neenah has confirmed it will retain the 500,000 acres of timberlands that it owns in the east coast province.
Neenah expects to pay between $15-$20 million to Northern Pulp, in order to assist the new company in its transition to stand-alone status. Overall, the company anticipates being over $20 million cash positive as a result of the tax benefits associated with the write-off and sale of the mill.
“This sale is the last major step of our strategy over the past three years to transform ourselves from a commodity pulp and paper company to a performance-based specialty products and premium fine paper company, said Sean Erwin, CEO and chairman of the board. “Without pulp, Neenah Paper will be less capital intensive and less volatile and we can focus on our core businesses and the sale of our remaining timberlands.”
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