Canada – Canada’s Catalyst Paper has accepted a binding bid from Hackman Capital and its affiliates to purchase the assets of its closed recycled-content newsprint facility in Snowflake, Arizona. Expectations are that the sale will be completed in the first quarter of this year.
Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its three mills in British Columbia boast a combined annual production capacity of roughly 1.5 million tonnes.
The transaction, which is subject to US court approval, also includes Catalyst’s shares of Apache Railway and was struck for a sum of more than US$ 13.4 million plus other ‘non-monetary considerations’. The buyer intends to continue to operate the Apache Railway as a going concern, and the business move is supported by the town of Snowflake and various local interests, says Catalyst.
‘While paper manufacturing is part of Snowflake’s past, this transaction puts the asset on a path to a new future that can continue to bring value to the region,’ observes Catalyst’s President and Chief Executive Officer Kevin J. Clarke. ‘We are pleased that this transaction has progressed efficiently and that the community’s interests have been considered through the process and in the successful bid.’
For more information, visit: www.catalystpaper.com