Sappi to Acquire Potlatch Coated Paper Business

JOHANNESBURG, SOUTH AFRICA—Consolidation in the paper industry continued in March when Sappi Ltd. announced it had reached an agreement to acquire Potlatch Corp.'s coated fine paper business.

The deal, worth $480 million and subject to regulatory approval, includes Potlatch's Cloquet, MN, pulp and paper mill. As part of the transaction, Potlatch will also cease production at its Brainerd, MN, coated paper mill and bear the related costs. The Brainerd mill produces 140,000 short tons per year.