Sappi to Acquire Matane Mill in Quebec Canada from Rayonier Advanced Materials.
M2 EQUITYBITES-August 5, 2019-Sappi to Acquire Matane Mill in Quebec Canada from Rayonier Advanced Materials
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5 August 2019 - South Africa-based Sappi Ltd., a global producer of dissolving wood pulp, speciality and packaging papers, graphic paper and biomaterials, has signed an agreement to acquire the 270,000 tpa Matane high yield hardwood pulp mill from Rayonier Advanced Materials for USD 175m, the company said.
The transaction will be funded through internal cash resources and available debt facilities.
This transaction is conditional on the approval from certain competition authorities. Sappi expects the acquisition to be completed during 4Q19.
The deal increases Sappi's pulp integration for its fast-growing packaging businesses in both North America and Europe.
It also reduces Sappi's cost of pulp, reduces the volatility of earnings through the pulp cycle and establishes certainty of supply for Sappi's increasing need for high yield pulp to support its recent investments.
Sappi has over 12,000 employees; manufacturing operations on three continents, in seven countries (nine mills in Europe, three mills in America and four mills in South Africa) and customers in over 150 countries worldwide
Matane Mill (Gaspe Peninsula, Quebec, Canada) is located on the south shore of the St. Lawrence River at the mouth of the Matane River. The mill has a capacity of 270,000 mt per annum of high yield hardwood pulp. It has 129 employees.
Rayonier Advanced Materials is a specialist in cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in cell phones, computer screens, filters and pharmaceuticals.
The company also manufactures products for lumber, paper and packaging markets.
With manufacturing operations in the US, Canada and France, Rayonier Advanced Materials employs approximately 4,200 people and had revenues of USD 2.1bn in 2018.
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|Publication:||M2 EquityBites (EQB)|
|Date:||Aug 5, 2019|
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