K-C in Talks with Atlas Holdings for Possible Sale of Everett Pulp Mill

Kimberly-Clark Corp., Dallas, Texas, USA, reports that it is in exclusive talks with Atlas Holdings LLC, Greenwich, Conn., regarding the potential sell of its pulp mill at Everett, Wash. The company had already warned the facility's 750 mill employees earlier this year that it would be shutting the mill down if a suitable buyer could not be found. On September 1, it added that it would lay off workers if a buyer is not found by the end of the year.

K-C spokesman Bob Brand noted that Atlas is a viable buyer interested in continued operations of the Everett mill. "At this time, we have selected to enter into an exclusivity arrangement with Atlas Holdings and will partner with them to complete extensive due diligence on-site as part of the next phase of the sales process. Atlas Holdings is a strong buyer candidate with extensive acquisition and pulp and paper industry experience. We are pleased by their continued interest in the Everett site and their capability and experience in operations management. The exclusivity agreement is a positive step forward in our sales process, but is not indicative of a sales agreement. As such, we will also continue to work with local union representatives and our employees to prepare for site closure.

Brand, however, pointed out that there is no deal yet, and that K-C would continue to work with local union representatives and employees to prepare for closing the plant, The company had announced several years ago that it planned to move out of the pulp production business. The Everett mill was started up in 1931 as Puget Sound Pulp and Timber Co. It became Soundview Pulp Co. in 1935 and was purchased by Scott Paper in 1951. Scott merged with K-C in 1985. Since the merger, K-C has invested some $300 million in the Everett operations, installing major wastewater treatment systems, adding a new effluent outfall, and switching its pulp bleaching from elemental chlorine to chlorine dioxide.

Atlas Holdings has some 5,000 employees at 10 companies and 60 facilities. Finch Paper's printing paper operations on the Hudson River in New York is among its holdings.

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