ND Paper, a subsidiary of Nine Dragons Paper, has completed the acquisition of Catalyst Paper’s US operations for $175m.
Image: ND Paper manufactures various packaging paperboard products. Photo: courtesy of Ivan Gromov / Unsplash.
Under the deal, ND Paper has acquired Catalyst’s Rumford mill in Maine and Biron mill in Wisconsin.
The company has also acquired Catalyst’s US operations center in Dayton of Ohio.
Catalyst Paper president and CEO Ned Dwyer said: “The net proceeds of the sale will be used to re-pay a significant share of our debt.”
With five paper production and two kraft pulping lines, the Rumford and Biron mills have a combined manufacturing capacity of around 900,000 tonnes.
The mill manufacture coated one-side, coated freesheet, coated groundwood, as well as hardwood and softwood market pulp grades for a diverse base of global customers.
The employees from both mills, as well as associated staff in Dayton will join ND Paper, as per terms of the deal.
Catalyst’s pulp and paper mills in Crofton, Port Alberni and Powell River, as well as Surrey distribution center and Seattle sales office are not part of the deal.
ND Paper CEO Ken Liu said: “We are very excited about the new products, team members and new business opportunities we can create with this acquisition.
“We look forward to working with the teams and local communities in Maine, Wisconsin and Ohio to expand our industry leadership globally.”
Based in Richmond of British Columbia, Catalyst Paper produces paper products for various applications, including newsprint, directory, and packaging.
The company supplies its products to retailers, publishers, commercial printers and convertors in North America, Latin America, the Pacific Rim and Europe.
ND Paper is engaged in the manufacturing and distribution of various types of pulp, paper and paper-based packaging materials.
The company produces different packaging paperboard products, including linerboard, high performance corrugating medium, coated duplex board, as well as recycled printing and writing paper and specialty paper.