Resolute Forest Products has found a buyer for its Thunder Bay pulp and paper plant.
Greenwich, Conn-based Atlas Holdings has signed a definitive agreement with the Montreal-headquartered forest products manufacturer.
A spokesperson for Resolute told TBnewswatch the purchase price is just under US$220 million.
The transaction will close sometime during the second half of this year pending regulatory approvals.
Founded in 2002, Altas runs 26 companies from 300 facilities worldwide and employs 50,000 in sectors including aluminum processing, automotive, building materials, capital equipment, construction services, food manufacturing and distribution, packaging, paper, power generation, printing, pulp, supply chain management and wood products.
Atlas’ companies generate approximately $16 billion in revenues annually.
A news release from Atlas said the plant will operate as a standalone company.
Resolute put the operation on the block last October. The mill makes bleached softwood and hardwood kraft pulp, paper and newsprint.
“We are extremely excited about the opportunity at Thunder Bay,” said Atlas Principal Daniel Merriam in a statement.
“Atlas is the ideal owner to take this great operation into its next chapter, as a strong and independent company. 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.”
Atlas Partner Neil Mahajan acknowledges the Thunder Bay mill has been a community industrial landmark since 1919.
“We understand Thunder Bay’s importance as a pillar of the local economy, and we look forward to bringing our deep experience in pulp and paper as we convert the mill into a stable, independent enterprise and build a bright future for Thunder Bay.”