BOWATER BUYS GREAT NORTHERN PAPER MILLS
BOWATER BUYS GREAT NORTHERN PAPER MILLS DARIEN, Conn., Dec. 31 /PRNewswire/ -- Bowater Incorporated
(NYSE: BOW) announced that it completed today its previously announced purchase of an 80 percent interest in Great Northern Paper, Inc. (GNP) from Georgia-Pacific Corporation (NYSE: GP).
Bowater paid $300 million in cash before closing adjustments. The purchase agreement gives Bowater the right to buy Georgia-Pacific's remaining 20 percent interest in the property for $22 million in cash on or after June 30, 1992, which Bowater said it intends to do. The property includes the pulp and paper mills at Millinocket and East Millinocket, Maine, with approximately 2.1 million acres of woodlands, Pinkham Lumber Company at Ashland, Maine, and substantial hydro-electric power facilities. Bowater will begin to manage the properties immediately and has named W.P. Gregory as president and general manager of Great Northern Paper, Inc. Gregory formerly was vice president and mill manager of Bowater's Southern Division at Calhoun, Tenn. The GNP mills currently have an annual capacity of about 550,000 tons of newsprint, directory and groundwood specialty paper grades and 135,000 tons of various grades of coated paper. GNP employs over 2,200 people. The mills have good positions in their respective markets and an excellent reputation for quality. In making the original announcement of Bowater's intention to purchase Great Northern Paper, A.P. Gammie, Bowater chairman and CEO, noted that the Millinocket and East Millinocket mills have a combined capacity equal to about 40 percent of Bowater's paper capacity. "Great Northern's products and markets are almost totally complementary to Bowater's," he said. "All our history has been in groundwood-based papers and we have the technical expertise and market support to develop the GNP mills' assets." Bowater's plans for the property include the immediate construction of a recycling plant for newsprint and directory papers and, when the market improves and the company can support it, more lightweight coated paper in grades which are easier to make from northern fibers than from the southern pine fiber utilized at Bowater's Catawba, S.C., mill. Gammie said that Maine Governor John McKernan and senior state officials including Maine House Speaker John Martin, Senate President Charles Pray and the legislative representatives from the Millinocket area all have been instrumental in helping Bowater obtain the permits necessary for the purchase to proceed on a timely basis. Bowater Incorporated is a major manufacturer of newsprint, coated groundwood publication papers, bleached kraft market pulps and a converter of communications papers for computers and other business applications. -0- 12/31/91 /CONTACT: Arthur H. King of Bowater, 203-656-7200, or at home, 203-655-4807/ (BOW GP) CO: Bowater Incorporated; Georgia-Pacific Corporation ST: Connecticut, Georgia IN: PAP SU: TNM FC -- NY015 -- 5864 12/31/91 11:24 EST
|Printer friendly Cite/link Email Feedback|
|Date:||Dec 31, 1991|
|Previous Article:||NOVEMBER MUTUAL FUND SALES TOTAL $22.9 BILLION|
|Next Article:||LIBERTY ALL-STAR EQUITY FUND FILES STATEMENT WITH SEC FOR OFFERING|