Catalyst Paper closes US$62.4M acquisition of 2 U.S. mills
Acquisition boosts B.C.-based company's North American production capacity to 1.9 million tonnes of paper, more than 550,000 tonnes of pulp
RICHMOND, B.C.—British Coumbia’s Catalyst Paper Corp. said it has closed a pair of mill acquisitions in the United States, boosting the company’s North American production capacity to 1.9 million tonnes of paper and more than 550,000 tonnes of pulp.
Catalyst paid a combined US$62.4 million to NewPage Corp. and the Rumford Paper Co. for the Biron paper million in Wisconsin and the Rumford pulp and paper mill in Maine.
“This acquisition represents a new chapter in the history of Catalyst Paper,” company president and CEO Joe Nemeth said in a statement. “With the addition of the Rumford and Biron mills, Catalyst becomes a larger and stronger company with five facilities across North America.
Nemeth said Catalyst is the only producer in North America with manufacturing facilities in the western, midwestern and eastern U.S.
Closing of the acquisition comes weeks after Catalyst indefinitely idled a paper machine at its Powell River, B.C., plant due to a lack of orders, cutting 50 jobs there.