RICHMOND, BC—Canadian paper manufacturer Catalyst Paper Corporation has completed the acquisition of the Biron paper mill in Wisconsin and the Rumford pulp and paper mill in Maine.  The deal was initially announced last October. The cash payment made on closing was US$62.4 million after giving effect to an adjustment under the purchase agreement based on estimated working capital at closing, and the final purchase price is subject to certain additional post-closing adjustments.


A Catalyst plant in Port Alberni, BC

"This acquisition represents a new chapter in the history of Catalyst Paper," Joe Nemeth, president and chief executive officer said. "With the addition of the Rumford and Biron mills, Catalyst becomes a larger and stronger company with five facilities across North America and an estimated production capacity of 2.1 million tons of paper and 500,000 tons of pulp. Catalyst is now the only producer in North America with manufacturing facilities in the West, Midwest and East, and has an enhanced product suite to effectively meet global customer needs.”

During the acquisition Catalyst also purchased from the sellers properties and assets needed to operate the two mills, including raw materials, the transition of certain customer orders and accounts, license or transfer of certain intellectual property rights, treatment and disposal of waste and wastewater and other transitional services.

Catalyst will begin reporting its operating and production information for the Rumford and Biron mills in its First Quarter Report.