Rumford mill to be acquired by Canadian paper company

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RUMFORD – A Canadian paper company has announced that it has entered into an agreement with NewPage Corporation to purchase the local pulp and paper mill, along with another facility in Wisconsin.

Catalyst Paper Corporation, headquartered in Richmond, British Columbia, will purchase the Rumford and Biron, Wis. mills for $74 million from NewPage, which owns eight other mills and facilities throughout the country. The deal is contingent upon the completion of the ongoing, $1.4 billion acquisition of NewPage holdings by Verso Paper Corp., which owns the mill in Jay. That process began on Jan. 3.

In a report filed to the federal Securities and Exchange Commission on Thursday, Oct. 3o, Verso indicated that the acquisition of NewPage’s mills by Catalyst was designed to “address potential antitrust considerations” relating to the acquisition of NewPage holdings by Verso. The federal Department of Justice has been reviewing the Verso acquisition for antitrust issues, with that agency requesting additional documentation relating to the proposed acquisition in April.

Established in 1901, the Rumford mill encompasses 73 acres and, following a round of layoffs earlier this year, employs approximately 700 people. According to Catalyst, the mill has the potential capacity to produce 510,000 tons of coated paper and 130,000 tons of hardwood and softwood pulp.

“With this Transaction, Catalyst will be better able to serve new and existing customers through operational synergies and a more diversified and higher value suite of products,” said Joe Nemeth, President and CEO of Catalyst, in a prepared statement. “Our acquisition of these U.S. pulp and paper mills, once complete, will support our efforts to improve our balance sheet and enhance the Company’s long-term competitiveness.”

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1 Comment

  1. And now we know about what a mill of roughly the size and complexity of the Rumford mill is worth on the market in Western Maine. $37 million dollars. For those of us who want to focus on the short term property tax implications of this in your community, take a few minutes to do so. Now, those who want to focus on the future of the paper industry consider that this current market valuation is a fire sale price. The only lower price for this facility will be when the mill is sold for its scrap value.
    Without resorting to panic, now is the time to plan for the future of Western Maine. There are a host of issues financial, environmental, and social that will need to be addressed. We, and our elected officials at the local, county, and state levels need to begin that process before it is time to panic.
    Thanks for your attention.

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