Operations & Management
West Fraser announces sale of two pulp mills in Western Canada to Atlas Holdings
Alberta-Based Millar Western Forest Products to operate both mills.
September 22, 2023 By P&PC Staff
West Fraser and Atlas Holdings signed a definitive agreement for the sale of West Fraser’s Quesnel River Pulp mill in Quesnel, British Columbia and Slave Lake Pulp mill in Slave Lake, Alberta to Atlas.
The agreement includes related woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel River Pulp facility. When the transaction is complete, Millar Western Forest Products will operate both pulp mills.
“We believe this transaction provides these two great assets and teams a strong strategic future while allowing West Fraser to focus our resources on our objective to be the premier wood-building products company in North America,” said Ray Ferris, West Fraser’s president and CEO. “Atlas Holdings and Millar Western bring deep experience in the pulp sector, and we look forward to continuing to work together as a key fibre supplier to Quesnel River Pulp.”
The more than 100-year-old Canadian forest products company, Millar Western is headquartered in Edmonton with existing pulp mill operations in Alberta. It is reportedly positioned to establish a strong foundation and future for the Quesnel River and Slave Lake pulp mills.
“This transaction will provide the dedicated and skilled teams at Quesnel River and Slave Lake with a solid future. Our team intends to continue investing in these high-quality mills and we look forward to collectively strengthening our product offerings and value proposition to the global BCTMP marketplace,” said David Anderson, CEO of Millar Western.
Atlas owns and operates several pulp, paper and wood products businesses in Canada and the United States. Millar Western joined the Atlas family in 2017.
Combined total cash proceeds from the sale are US$120 million. The transaction is anticipated to close following the successful completion of customary regulatory reviews and satisfaction of customary closing conditions.
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