Tembec Closes Sale of Skookumchuck Mill
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Tembec Inc., Montreal, Que., Canada, has closed the sale of its NBSK (northern bleached softwood kraft) pulp mill and related assets in Skookumchuck, B.C., Canada, to Paper Excellence Canada Holdings Corp. Total consideration for the transaction is $94.6 million, including $25.5 million in working capital. The purchase price remains subject to closing working capital adjustments.
Tembec will use the cash proceeds to pay down revolving operating debt and for general corporate purposes.
Approximately 280 employees are included in the transaction. Tembec acquired the pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd.
Tembec is a producer of pulp, paper, lumber, and specialty cellulose. Its principal operations are in Canada and France. With annual sales of approximately $2 billion, Tembec currently has 3,400 employees.
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