Tembec sells Skookumchuk Pulp Mill for $89 million

Tembec Inc. has reached an agreement to sell its NBSK pulp mill and related assets and liabilities located in Skookumchuck, B.C., to Paper Excellence Canada Holdings Corp. for a purchase price of $89 million.

The transaction is expected to close in the second quarter of 2013.

Tembec acquired the Skookumchuck pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd. The mill, which currently employs 290 people, started up in 1968. Its pulp is shipped to North American and Asian customers primarily for tissue applications.

BofA Merrill Lynch served as the exclusive financial advisor to Tembec.

Tembec is a manufacturer of forest products. Its principal operations are in Canada and France. The company has some 3,700 employees and annual sales of approximately $2 billion.

Paper Excellence Canada Holdings Corporation operates pulp and paper mills. The company is based in Richmond, Canada. Paper Excellence Canada Holdings Corporation operates as a subsidiary of Paper Excellence B.V.

Paper Excellence Group is a privately owned group of companies in the pulp and paper industry. Headquartered in Vancouver, Canada, the Group has close to 2 million tonnes of pulp production capacity, 550,000 tonnes of paper production capacity through four mills in Canada, two mills in France and one mill in Germany. Paper Excellence employs approximately 2,000 employees. Paper Excellence BV (“Paper Excellence”), is a Netherlands subsidiary of Sinar Mas group of Indonesia.

Source: Canadian Manufacturing newsletter