Neenah sells Nova Scotia timberlands
May 16, 2006 By Pulp & Paper Canada
“I feel confident that the mill will continue to be successful under this new arrangement,” Sean Erwin, chairman an…
“I feel confident that the mill will continue to be successful under this new arrangement,” Sean Erwin, chairman and CEO of Neenah Paper said of the company’s Nova Scotia-based, Pictou pulp facility, and the decision to sell off 500,000 acres of timberlands in the province.
The timberlands are being sold to Maine-based Wagner Forest Management, for $140 million. Neenah expects to bring in roughly $120 million from the sale, or an after-tax gain of approximately $80 million, money it plans on using for various ventures. “The proceeds can provide a source of funding for investments which would provide growth and offer attractive financial returns,” Erwin said.
According to the terms of the sale, the Pictou mill will continue to be fed a supply of fibre for its operations.
Once the transaction is completed, Neenah will continue to own 500,000 acres of timberlands in Nova Scotia.
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