Resolute Forest Products Inc. has entered into a definitive asset purchase agreement with New-Indy Containerboard, LLC (“New-Indy”) for the sale of its Catawba, South Carolina, paper and pulp mill, for a total purchase price of about $300 million.
Catawba’s operation includes a kraft mill and a pulp dryer to produce market pulp, a thermomechanical pulp mill as well as a lightweight coated paper machine. The facility currently employs 460 people.
New-Indy is an independent manufacturer and supplier of recycled containerboard to the corrugated box industry. The company was formed in 2012 as a joint venture by The Kraft Group, LLC and Schwarz Partners, LP. It operates manufacturing facilities in California, Illinoisand Indiana, along with a recycling facility in Indiana. Under the terms of the asset purchase agreement, New-Indy will offer employment to Catawba employees effective upon closing of the transaction, which is expected at or around year-end. The sale is subject to certain closing conditions.
“This transaction will allow us to realize significant value for an asset whose greatest earnings potential lies with the investment in and diversification of the mill’s operations, as proposed by New-Indy,” stated Yves Laflamme, President and Chief Executive Officer of Resolute. “We are pleased that the mill will continue to operate and benefit the local community, both economically and socially.”
