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ABITIBI-PRICE CONTINUES FOCUS ON CORE BUSINESSES; SELLS BUILDING PRODUCTS DIVISION TO TWO SEPARATE BUYERS

 ABITIBI-PRICE CONTINUES FOCUS ON CORE BUSINESSES; SELLS BUILDING
 PRODUCTS DIVISION TO TWO SEPARATE BUYERS
 TROY, Mich. June 22, /PRNewswire/ -- Abitibi-Price Inc. (NYSE: ABY; Toronto, Montreal, and Vancouver Stock Exchanges: A) announced today that it has agreed to sell its U.S. building products division for approximately U.S.$100 million (C$120 million) to two separate buyers. Of the four business units in the division, the buyer of three of the business units is an organization formed by Kohlberg & Co., a merchant banking firm based in New York, and George T. Brophy. The millwork unit is being sold to an investment group led by Alan J. Gitkin of Wayne, N.J. These transactions are expected to close during the third quarter of this year.
 Raymond Langevin, president of the Abitibi-Price U.S. building products division said, "These transactions demonstrate the company's ongoing commitment to selling non-strategic assets, aimed at bringing more focus to the management of its core businesses -- the manufacturing and marketing of groundwood papers. At the same time the employees of this division will be reassured about the future, because of the business expertise, understanding and commitment of their new owners."
 The three business units of the building products division to be sold to Kohlberg and Brophy produce hardboard panelling, hardboard siding and plastic mouldings for the new construction and home improvement markets. These units operate in Middlebury, Ind.; Alpena, Mich.; Roaring River, N.C.; and Toledo, Ohio. Consummation of the sale of these units is subject to the purchasers reaching satisfactory arrangements with the division's personnel, as well as the completion of definitive documentation.
 The millwork business unit is a national supplier of interior wood bi-fold doors, shutters, shelving and allied products from its facilities in Hiawatha, Kan., and Lumberton, N.C. This unit will operate as a new company under the name of Flair Fold. This transaction is also subject to the completion of definitive documentation.
 Abitibi-Price, a world-class competitor in the forest products industry, is a producer of newsprint and uncoated groundwood papers. The company is a major converter and distributor of paper and other information-related products.
 -0- 6/22/92
 /CONTACT: J. Raymond Langevin, 313-649-3300, or Robert J. Tait, manager-investor relations, Toronto, Ontario, 416-369-6789, both of Abitibi-Price/
 (ABY) CO: Abitibi-Price Inc. ST: Michigan IN: PAP SU:


TQ -- NY015 -- 2257 06/22/92 09:29 EDT
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Publication:PR Newswire
Date:Jun 22, 1992
Words:391
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