Atlanta, GA — SP Newsprint, a privately held producer of newsprint, announced that it has entered into an agreemen…
Atlanta, GA — SP Newsprint, a privately held producer of newsprint, announced that it has entered into an agreement with certain affiliates of Peter Brant, who is the controlling shareholder of White Birch Paper Company, to be acquired for $350 million in an all-cash transaction. Pending the receipt of regulatory approval, the acquisition is expected to close during the first four months of 2008. Subject to obtaining certain consents, it is expected that SP Newsprint will become a subsidiary of White Birch Paper.
The transaction is the result of a strategic review undertaken by SP Newsprint to evaluate alternatives to position the company for continued long-term success and maximize the value of the business. The sale includes the company’s two newsprint mills in the United States as well as SP Recycling SP Newsprint’s wholly owned recycling subsidiary.
“SP Newsprint’s world-class assets, power generating facilities and recycling organization present a compelling opportunity,” said Peter Brant, chairman & chief executive officer, White Birch Paper. “This acquisition is expected to broaden our geographic ability to supply our U.S. and foreign customers and provide White Birch Paper with a strong platform to expand in the recycling business.”
White Birch Paper is the second largest producer of newsprint in North America with production totaling approximately 1.35 million metric tons. The companys manufacturing facilities are located in Riviere du Loup, Quebec City and Gatineau, QC, as well as Ashland, Virginia. In addition to newsprint, the company produces directory paper and paper board products.
Source: Brunswick Group
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