recent mill-related transactions summary by sector · recent mill transactions there has been...

Recent Mill-Related Transactions – Summary by Sector

1Rivermill Advisors, LLC

Containerboard / Kraft Paper

29%

Other Packaging23%

Tissue / Specialty21%

Pulp19%

Newsprint / Publication Paper

8%

North American Paper & Pulp Mill Transactions by Sector(Announced Deals 2015-Jan. 2020)

14

4

11

9

7

10

There have been 48 mill-related transactions from 2015 through January 2020. Packaging grades represent the majority of the transactions

Recent Mill Transactions

There has been significant transaction activity involving pulp, paper and paper packaging mills since the beginning of 2017. For the most part, the acquirors were strategic buyers

2 Rivermill Advisors, LLC

Acquiror Target Announced Target / Transaction Description

July 2019

• Artistic Carton consists of the White Pigeon Paper coated recycled

paperboard mill in southwest Michigan, with annual production

capacity of 70,000 tons, and two Midwest converting facilities.

Purchase price of $50 million.

Aug. 2019• Rayonier Advanced Materials’ Matane, QC high-yield/BCTMP

hardwood pulp produces 270,000 metric tons annually. Purchase price of $175 million.Matane, QC Pulp Mill

Nov. 2019

• Verso’s Androscoggin mill in Jay, ME has the capacity to produce 425,000 tons annually of flexible packaging papers, release liner base, specialty labels, and kraft linerboard and kraft paper. The Stevens Point mill has capacity of 210,000 tons per annum of coated flexible packaging papers, release liner base, thermal papers, and other specialty labels. Purchase price of $400 million.

Jay, ME and Stevens Point, WI Mills

• Midwest Paper is a manufacturer and distributor of recycled containerboard, natural kraft & bleached packaging, and printing & writing grades. Midwest Paper has capacity to make 450,000 tons annually on three machines at its Combined Locks, WI, mill. Purchase price undisclosed

Dec. 2019





Nov. 2018

• Neenah’s Brattleboro, VT single machine paperboard mill manufactured products for the office products market and other specialty applications. Neenah had announced its intent to shut the facility if it could not locate an operator acquiror. Purchase price of $5 million.

Dec. 2018

• Caraustar produces coated and uncoated paperboard and specialty paperboard products, folding cartons and set-up boxes. The Company operates 12 paperboard mills and 52 converting plants (45 industrial and 7 consumer) throughout the North America. Purchase price of $1.8 billion.

• Orchids Paper is a producer and converter of recycled and virgin tissue products with parent roll and converting capacity of 110,000 tons and 114,000 tons per annum at facilities in Pryor, OK and Barnwell, SC. Purchase price of $207 million; acquired through a bankruptcy sale process.

July 2019

May 2019

• Corenso Holdings America is a leading U.S. manufacturer of uncoated recycled paperboard (URB) and high-performance cores. Corensooperates a 108,000 ton per year uncoated recycled paperboard mill in WI as well as converting facilities in Wisconsin Rapids, WI and Richmond, VA. Purchase price of $110 million.

Holdings America

Brattleboro, VT Mill





Oct. 2018

• Carthage Specialty Paperboard in New York has annual capacity of 60,000 tons, producing uncoated recycled specialties for picture framing, pharmaceutical cap closures, rigid and folding cartons, and other applications. Purchase price of $10 million; acquired through a bankruptcy sale process.

Oct. 2018

• Resolute’s Catawba, SC paper and pulp mill produces coated papers and market pulp with total annual capacity of 546,000 tons. New Indy Containerboard intends to convert some output to high-quality, virgin, ultra-lightweight linerboard. Purchase price of $300 million.Catawba, SC Mill

Oct. 2018

• Catalyst Paper operates three pulp and paper mills in British Columbia total capacity of 1.3 million tons/yr of NBSK market pulp and paper products including coated mechanical grades, directory paper, newsprint, industrial packaging and food service papers. Purchase price undisclosed.

Oct. 2018

• The Old Town mill, with annual capacity of 155,000 metric tons of market pulp, had been idle since 2015. ND Paper acquired the facility with plans to produce 275,000 annual metric tons of unbleached softwood pulp. Purchase price undisclosed.

Old Town, ME Pulp Mill

(OTM Holdings)





Aug. 2018• Glatfelter’s Specialty Papers Business Unit produces a range of

specialty paper grades at mills in PA and OH with total capacity of 735,000 annual tons. Purchase price of $360 million.

Aug. 2018• Clearwater Paper’s Ladysmith, WI mill has capacity of 53,000 tons

annually on two machines, producing recycled-content tissue parent rolls. Purchase price of $72 million.Ladysmith, WI Mill

Aug. 2018• Resolute’s Fairmont, WV recycled bleached kraft pulp mill has capacity

of 218,000 tons per annum. Purchase price of $55 million.

Aug. 2018

• Verso’s Wickliffe, KY mill had manufactured coated and uncoated paper as well as market pulp with total capacity of 285,000 tons. The mill had been idle since August 2015. Global Win Corp., a subsidiary of Shanying International, announced plans to invest $150 million to enable the mill to produce pulp and brown paper packaging. Purchase price of $16 million.

Global Win / Shanying International

Fairmont, WV Mill

Specialty Papers

Wickliffe, KY Mill





May 2018• Catalyst’s mills in Rumford, ME and Biron, WI have annual capacity of

980,000 tons of coated papers and, at Rumford, 120,000 metric tons of market pulp. Purchase price of $175 million

April 2018• Mondi’s Pine Bluff, AR mill produces multiwall, converting, and grocery

bag unbleached papers with an annual capacity of 140,000 tons.

Purchase price undisclosed.

May 2018• Conitex Sonoco is a vertically integrated manufacturer of paper-based

cones and tubes for the textile industry. Sonoco acquired the remaining 70% interest in the joint venture for $133 million in cash.

July 2018

• Expera Specialty Solutions produces specialty papers including unbleached and bleached food packaging, release liner / label papers, and technical/ industrial products such as backings, barriers and tape. Its four paper mills have combined capacity of 560,000 tons per annum. Purchase price of $615 million.

Rumford, ME and Biron, WI Mills

Pine Bluff, AR Mill




Acquiror Target / Transaction Description

Sept. 2017

• Appleton Coated had capacity to produce 400,000 tons of paper on three paper machines with off-line coating capacity of 280,000 tons. The mill had historically produced coated and uncoated papers, and recently entered the containerboard market. Acquired for $21.5 million in a receivership auction. Mill was in a “hot idle” state at the time of purchase.

Dec. 2017

• Crane Currency operates a currency papers production facility (2 paper mills) in Dalton, MA, a currency security thread manufacturing facility in Nashua, NH, a banknote papers production facility in Sweden and a banknote printing facility in Malta. Purchase price of $800 million.

Oct. 2017

• International Paper’s North America Consumer Packaging business operates two U.S. coated bleached paperboard mills with 1.2 million tons three U.S. converting facilities, and one U.K. converting facility. Graphic Packaging assumed $660 million in debt as part of the agreement.

Jan. 2018

• KapStone is a leading producer of containerboard, corrugated products and kraft/specialty papers. It operates four mills with 3 million tons of production capacity, 23 corrugating converting facilities and a packaging distribution business with 60 locations. Purchase price of $4.9 billion in cash, stock and assumed debt.

AnnouncedTarget

North America Consumer Packaging





June 2017

• Interstate Resources manufactures containerboard at two mills, Riceboro, GA (kraft linerboard, 373,000 tons of annual capacity) and Reading, PA (recycled medium, 207,000 tons of annual capacity). The Company also operates 12 corrugated converting facilities in the Eastern US. DS Smith acquired an 80% stake at an enterprise value of $1.4 billion.

March 2017

• Millar Western is an Alberta, Canada producer of market pulp (BCTMP) at one mill with 320,000 metric tons of annual capacity and two softwood lumber mills (one co-located with the pulp mill). Transaction involved debt exchange (45% reduction of the prior principal of US$210 million), with private equity investor Atlas Holdings further exchanging its new debt for an 80% equity stake.

March 2017

• Nippon Paper’s Port Angeles mill had capacity to produce 165,000 annual tons of uncoated groundwood and unbleached bag papers on two machines. It shut down in January 2017, operating only a single 100,000 ton machine prior to the shut. BioPappel acquired the mill intending to convert to 220,000-260,000 tons of containerboard and specialty packaging papers production. Purchase price of $20.6 million.

May 2017

• Publicly traded producer of dissolving pulp, specialty chemicals, paper pulp, bleached board, newsprint and lumber with operations primarily in Eastern Canada (one dissolving pulp mill in France, one US chemicals facility). Combined annual capacity of 1.3 million tons per year. Purchase price of $807 million.

Port Angeles, WA Mill

Announced Acquiror TargetPurchase

PriceCapacity

(000 tons)(1) Grades DescriptionNov-16 Twin Rivers Paper Burrows Paper Mill Assets ND 53 Specialty lightweight papers

and tissue• Four mills in NY and MS. Assets sold in conjunction with sale of

Burrows converting assets to Novolex• Twin Rivers is owned by Atlas Holdings and Blue Wolf Capital.

Burrows was family ownedNov-16 American Industrial Tolko The Pas, MB Mill ND 188 Kraft papers • Extensible kraft papers mill for industrial sacks

Acquisition Corp. (extensible, virgin fiber) • Tolko announced in August its intention to shut the mill by December

Oct-16 One Rock Capital NORPAC (Longview, WA Mill) ND 750 Newsprint and high-bright/uncoated

• Prior joint venture owners were Weyerhaeuser and Nippon Paper Industries

freesheet substitutes • Purchase price undisclosed but Weyerhaeuser filings show $84 million before any assumed debt

Aug-16 Arbor Investments Dunn Paper ND ~300 Coated and uncoated MG and other specialty papers,

• Six mills producing range of specialty papers for food packaging as well as absorbency and specialty tissue products

specialty and TAD tissue • Arbor Investments focuses on the food & beverage sector. Seller was Wingate Capital

• Purchase price undisclosed but debt for the acquisition totalled $285 million

Jun-16 Nippon Industries Weyerhaeuser Liquid Packaging Board Business

$285 309 Bleached liquid packaging board

• Japanese paper manufacturer Nippon Industries acquired Weyerhaeuser's mill in Longview, WA

May-16 International Paper Weyerhaeuser Pulp Business $2,200 1,900 Fluff and NBSK pulp • 4 fluff pulp mills in the US South and 1 NBSK mill in Canada. 2015 sales of $1.5 billion with 23% EBITDA margin

Dec-15 Gordon Brothers Lincoln Paper & Tissue $5.9 76 Commodity and • Liquidator group acquired Lincoln, ME mill in bankruptcy auctionConsortium & Kruger Products

specialty tissue • Largest paper machine subsequently sold to Kruger Products for transfer to Crabtree, QC. Remaining paper machines sold at auction for resale

Nov-15 Resolute Forest Products Atlas Paper $156 65 Tissue • Integrated tissue producer and converter with 3 paper machines and 14 converting lines at two FL locations, as well as a separate paper recycling facility

• Seller was Peak Rock CapitalNov-15 Stanley Zellar / UP Paper Manistique, MI Mill ND 120 Recycled kraft papers • Local businessman acquired through foreclosure sale the assets of

FutureMark Manistique, which produced recycled high-bright publication and unbleached kraft papers

• Investors subsequently partnered with a new management team to re-start mill as UP Paper in June 2016

Oct-15 SCA Wausau Paper $680 190 Tissue • Integrated tissue producer and converter with 3 paper machines at sites in KY and OH. KY facility also includes 214,000 tons converting capacity

Sep-15 Hood Container KPAQ ND 265 Linerboard (l/w virgin), kraft papers and unbleached

specialties

• Hood Container, which operates a containerboard mill in New Johnsonville, TN and 5 converting operations, acquired the St. Francisville mill from Amzak Partners

• Hood's parent company also operates a network of multiwall bag plants through Hood Packaging

(1) Short tons for paper grades, metric tons for pulp grades

Announced Acquiror TargetPurchase

PriceCapacity

(000 tons)(1) Grades DescriptionAug-15 WestRock SP Fiber $289 930 Containerboard, kraft • Two mills at Dublin, GA and Newberg, OR

papers and newsprint • Dublin produces 550,000 tons of containerboard and kraft papers on two machines

• WestRock closed Newberg, with 1 newsprint machine and 1 recently converted containerboard/kraft papers machine, shortly after closing the transaction

• Sellers were lenders including GE Capital that acquired the Company out of bankruptcy in 2012

Jun-15 New-Indy Containerboard Forest Resources Containerboard & Specialty Mills

ND 143 Corrugating medium (recycled) and specialty

• Hartford City, IN recycled corrugating medium mill (132,000 tons) and small Peoria, IL specialty kraft/crepe papers mill

kraft papers • Schwarz Partners, one of New-Indy's two shareholders, also acquired Forest Resources' Shillington Box converting facility in St. Louis, MO area

• Seller was Atlas HoldingsJun-15 PaperWorks Canampac (Forest Resources

Paperboard & Folding Carton Ops.)

~$86 106 Coated recycled board • Ontario, Canada mill and separate folding carton operation. Seller was Atlas Holdings

Mar-15 MeadWestvaco International Paper Carolina Coated Bristols Brand

ND ND Coated bristols • Sale of brand in conjunction with conversion of Riegelwood, NC mill from 350,000 tons of coated bristols and paperboard to 400,000 metric tons fluff pulp

• International Paper's total coated bristols capacity was estimated around 236,000 tons

Mar-15 Rolland Enterprises / HIG Fox River Fiber ND 136 Deinked recycled pulp • Wetlap mill in DePere, WICapital • HIG Capital acquired the facility and merged it with Rolland which

operated separate deinked pulp and printing/ security papers mills in Quebec

• Seller was a group of private investorsFeb-15 Hokuetsu Kishu Paper Alberta Pacific Forest Industies ND 650 NBHK, NBSK pulp • Primarily NBHK and small portion NBSK mill at Boyle, Alberta

(Alpac) • Acquisition of 70% stake from Mitsubishi CorporationFeb-15 Lindsay Goldberg Port Townsend Paper ND 310 Containerboard and kraft

papers (virgin & recycled); • Mill in Port Townsend, WA and 2 corrugated converting facilities

in Richmond and Burnaby, BCunbl. kraft pulp • Seller was GoldenTree Asset Mgmt.

Jan-15 RockTenn(2) MeadWestvaco(2) $9,849 3,000 Paperboard and containerboard

• Merger of leading containerboard / corrugated and paperboard / folding carton producer RockTenn and leading paperboard / folding carton / other packaging producer MeadWestvaco

Jan-15 Corrugated Supplies Corp. FutureMark Alsip Mill $8.2 165 Corrugating medium • Shut coated paper mill in Alsip, IL, sold in bankruptcy auction(recycled) - conversion from

coated papers• Corrugated Supplies operates or holds stakes in 5 corrugated

sheet feeder facilities across the US

(1) Short tons for paper grades, metric tons for pulp grades(2) Treats Rock-Tenn as the acquiror based on the price premium paid to MeadWestvaco shareholders. MeadWestvaco technically was acquiror with its

shareholders 50.1% of the shares of the combined companySource: RISI, Rivermill analysis

recent mill-related transactions summary by sector · recent mill transactions there has been...

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