Catalyst Paper has confirmed that it has entered into an agreement with ND Paper LLC, a wholly owned subsidiary of Nine Dragons Paper (Holdings) Ltd, for the sale of Catalyst’s US operations to ND Paper for US$175 million.
ND Paper will acquire Catalyst’s Rumford, Maine and Biron, Wisconsin mills along with the associated staff at the company’s US operations center in Dayton, Ohio. “We’re proud of what our employees have accomplished at our Biron and Rumford mills and our Dayton operations center. Their hard work and dedication have vastly improved these operations,” said Ned Dwyer, Catalyst President and CEO.
“This transaction allows Catalyst to re-pay a significant portion of our debt and focus on our British Columbia operations,” said Dwyer.
This will be the first move into the US market by Nine Dragons. “We are very pleased to welcome the Rumford and Biron mills to the Nine Dragons family,” Nine Dragons Chairwoman Yan Cheung said in a statement.
“We are committed to making these mills more competitive on a global scale, while staying true to our core values as an environmentally friendly and socially responsible enterprise with utmost respect for our employees,” according to the statement. “We look forward to working with the teams and communities in Maine and Wisconsin as we embark on this next phase of expansion together.”
