Rayonier Advanced Materials Completes Sale of Lumber and Newsprint Assets
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Rayonier Advanced Materials Inc. announced that it has completed its previously announced sale of its lumber and newsprint assets to GreenFirst Forest Products Inc., a Canadian lumber company, for a total purchase price of approximately US$235 million, subject to final adjustments.
The lumber and newsprint assets:
• include six lumber mills which are located in Chapleau, Cochrane, Hearst and Kapuskasing in Ontario and in Béarn and La Sarre in Québec as well as one newsprint mill (capacity: 220,000 metric tons per year) located in Kapuskasing, Ontario.
• produced 604 million board feet in 2020 with a combined nameplate capacity of 755 million board feet and are capable of producing a wide range of forest products used in residential and commercial construction, including dimensional lumber, wood chips and by-products.
• include the lumber and newsprint mills as well as certain real property, machinery, inventory, permits, licenses and other related assets.
• exclude accounts receivable and accounts payable.
The total purchase price is payable approximately 85 percent in cash and 15 percent of common shares in GreenFirst (the "Green First Shares"), which is subject to a six-month holding period. Notably, RYAM retained all the cash generated by the Purchased Assets prior to closing plus rights and obligations related to all softwood lumber duties, including any potential interest on the duties, previously paid to the U.S. Department of Commerce of approximately $110 million.
As previously disclosed, the proceeds will be used to repay debt and make strategic capital investments focused on the High Purity Cellulose segment
