Ownership of Papier Masson now rests in the hands of White Birch Paper Company. The two corporations recently annou…
Ownership of Papier Masson now rests in the hands of White Birch Paper Company. The two corporations recently announced the reaching of an agreement for the acquisition of all the outstanding shares of Papier Masson by an affiliate of White Birch Paper Company. The deal is expected to wrap up in the first quarter of this year.
BMO Nesbitt Burns acted as a financial advisor to Papier Masson, while TD Securities and Credit Suisse First Boston provided financial advisory services to White Birch Paper.
“This is the right acquisition at the right time,” Peter Brant, CEO and chairman of White Birch said of the purchase. The transaction positions White Birch as the third largest producer of newsprint in North America.
Although the final selling price was not made public, the Montreal Gazette reported the amount was likely in the ballpark of the mill’s annual sales, which hovered around $145 million U.S.
The purchase is in line with other similar investments Brant has made over the years. In 2004, he bought the Stadacona newsprint mill from Enron, just prior to the infamous energy company’s downfall. He has several holdings in Quebec, as well as cutting rights in the province.
This latest transaction positions White Birch as the third largest producer of newsprint in North America.
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