Sappi Inks Deal to Acquire Pulp Mill in Quebec to Grow Its Packaging Business
Editor's Note: This announcement from Sappi North America was sent out to interested parties.
Sappi Limited has signed an agreement to acquire the Matane high yield hardwood pulp mill in Quebec from Rayonier Advanced Materials. This is a very exciting deal for all of us. The acquisition of the mill, which has a strong global reputation for quality, will increase Sappi’s pulp integration for its fast-growing packaging businesses in both North America and Europe.
The transaction brings clear benefits to our stakeholders. The Matane Mill will become part of Sappi North America (three existing mills) which in turn is a part of the global Sappi group (18 existing mills and production facilities). Sappi is a committed and active partner with local communities wherever it operates. Sappi’s global sales and support network (including 37 sales offices) serves customers in over 190 countries. Sappi has a strong focus on innovation, reliability, product excellence and technical support; and Sappi has a proud track record of successful acquisitions and integrations in North America and Europe.
As stated in our media release, the specific reasons for the transaction include increasing Sappi’s pulp integration for its fast-growing packaging businesses in both North America and Europe; supporting Sappi’s 2020Vision to grow in higher margin growth segments; reducing Sappi’s cost of pulp; reducing the volatility of earnings for Sappi through the pulp cycle; establishing certainty of supply for Sappi’s increasing need for high yield pulp to support its recent investments; and enabling supply to be increased over time to Sappi’s mills in North America and Europe as demand increases and capacity expands in certain growth businesses. At the same time, this acquisition provides us with a healthy market pulp business with a strong customer base. We will work with our new customers during the transition and will of course honor all contractual commitments.
While we look forward to welcoming our new colleagues from Matane to the Sappi team and to sharing with them this very exciting phase of building an even bigger and more successful Sappi, the deal is subject to clearance by the relevant regulatory bodies in a number of jurisdictions. In the meantime, Rayonier will continue to operate the Matane Mill separately and independently from Sappi until clearances from the authorities are obtained. We expect completion of the deal during the fourth calendar quarter of 2019.
Please be assured that our number one priority during this acquisition will be to ensure that our service, quality, and products remain at the very highest levels.
We will share more information on our plans going forward as this process continues.
The preceding press release was provided by a company unaffiliated with Printing Impressions. The views expressed within do not directly reflect the thoughts or opinions of the staff of Printing Impressions.