Atlas goes for Resolute’ Forest Products’ assets in Thunder Bay mill

CANADA – Atlas Holdings’ affiliate has signed a definitive agreement to acquire Resolute FP Canada’s paper mill in Thunder Bay, Ontario.

The deal is subject to certain customary closing conditions and regulatory approvals and is scheduled to be completed in the second half of the current fiscal year.

Once this transaction is complete, the pulp, newsprint and directory paper mill will be eligible to operate as its own stand-alone company, as part of Atlas’ existing global portfolio manufacturing and distribution businesses.

Atlas’ head Daniel Merriam said: “As always, we will partner with strong local leadership to strengthen Thunder Bay’s operations, to serve Thunder Bay’s customers in a highly responsive fashion, and to strongly support the local and regional community.

“We recognize Thunder Bay’s historic and unique position in Ontario and the broader pulp and paper industry.”

Based in Connecticut, US, Atlas has a portfolio comprising several pulp, paper and related industries, including its first platform company Forest Resources.

The initial announcement regarding the selling of the Thunder Bay paper mill’s operations was made by Paper Excellence in October last year.

After this deal’s closure, Resolute said it will continue to control the sawmills and woodlands operations in north-west Ontario.

The associated companies will enter into specific ancillary agreements, including a long-term agreement with Resolute to deliver woodchip and biomass feedstock for the Thunder Bay mill.

Resolute’s exclusive financial advisor and legal advisor for this deal are BMO Capital Markets and Stikeman Elliott, respectively.

Resolute president and CEO Remi G Lalonde said: “The mill is an exceptional asset. I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future, and I sincerely wish them all the best.”

Meanwhile, in October last year, Atlas Holding acquired the independent pulp, paper and packaging industry holding company Crown Paper Group.

Crown Paper Group consists of Port Townsend Holdings company and Montebello Container Corporation. The group has total sales of US$321 million and employs 780 people across US and Canada.

With the acquisition of Crown Paper Group Atlas Holdings further expanded its investment portfolio in the pulp and paper and packaging sectors.

The portfolio already includes US tissue and sanitary products manufacturer Marcal, the US label, packaging and publishing paper producer Twin Rivers Paper Company, US printing and writing and technical paper company Finch Paper, and Canada’s specialty high-yield pulp producer Millar Western.

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