Expera to Acquire Old Town Pulp Mill
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Expera Specialty Solutions LLC, Kaukauna, Wis., USA, a portfolio company of KPS Capital Partners, LP, announced this week a definitive agreement to acquire certain assets related to the Old Town Fuel & Fiber pulp mill, Old Town, Maine, from its senior secured lender. Expera expects to complete the transaction as part of a sale process under Section 363 of the U.S. Bankruptcy Code. Financial terms of the transaction were not disclosed.
The Old Town mill, founded more than a century ago, has the capacity to produce more than 200,000 tpy of northern bleached kraft (NBSK) pulp. The Business closed this past August, which left the mill shut down indefinitely. Expera intends to invest significant additional capital and resources into Old Town to ensure the highest level of production quality and capacity.
Russ Wanke, CEO of Expera, said that "a combination of Expera and Old Town will significantly strengthen both businesses. In particular, the combination will increase Expera's vertical integration into pulp and reduce Old Town's go-forward commercial risk by becoming part of Expera, a financially strong enterprise, that serves stable and growing end markets and possesses a dedicated base of long-term customers rather than as a standalone enterprise."
Maine Governor Paul R. LePage, said that "I am honored to welcome Expera to Maine. We appreciate their investment and determination to get this facility back up and running as quickly as possible. The Old Town facility combines a valuable asset with tremendously knowledgeable and hardworking Mainers who are eager to get back to work. My administration will continue working with Expera as they move forward. This is terrific news for the future of Maine's forest products industry."
U.S. Senator Susan Collins of Maine commented that "this is encouraging news for Maine's forest products industry and for the workers in the Old Town area who lost their jobs earlier this year. While there is much work to be done before this sale is finalized and people are brought back to work, I applaud the efforts of Expera Specialty Solutions and all of those involved in this effort."
U.S. Senator Angus King of Maine additionally noted that "this is great news for the Old Town area and the State of Maine. Expera will find a great workforce with deep experience at this mill, who I'm sure will be happy to get back to work doing what they have done so well over the years."
Completion of the transactions is expected to occur during the fourth quarter of 2014, subject to customary closing conditions.
Expera is a producer of specialty paper products for use in the pressure-sensitive release liner, industrial, and food packaging segments. The company employs approximately 1,800 people across four Wisconsin manufacturing facilities located in Rhinelander, Mosinee, Kaukauna, and De Pere.
