Tembec to sell B.C. pulp mill
Tembec announced plans to sell its a British Columbia NBSK pulp mill for $89 million.
Tembec said it has reached an agreement to sell its NBSK pulp mill and related assets and liabilities located in Skookumchuck, British Columbia to Paper Excellence Canada Holdings Corporation for a purchase price of $89 million, which includes working capital.
Closing of the transaction is expected to occur in the second calendar quarter of 2013 and remains subject to certain conditions and regulatory approvals.
“This transaction supports the continuing transformation of the Company and the reshaping of its business portfolio,” stated Tembec President and CEO James Lopez.
Tembec acquired the Skookumchuck pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd. This mill, where 290 employees currently work, started up in 1968. Its pulp is shipped to North American and Asian customers primarily for tissue applications.
BofA Merrill Lynch served as the exclusive financial advisor to Tembec.