UPM has signed an agreement to sell 100% of the shares of its Austrian subsidiary UPM Kymmene-Austria GmbH to the HEINZEL GROUP, a leading pulp, packaging and paper producer and trader in Central and Eastern Europe. The transaction comprises the UPM Steyrermühl site with approx. 400 employees, including the newsprint paper machine with an annual capacity of 320,000 tonnes and the Steyrermühl sawmill operations with an annual timber capacity of 370,000 cubic meters. The parties have agreed not to disclose the value of the deal. Closing of the transaction and end of newsprint production at UPM Steyrermühl are planned for the end of 2023. HEINZEL is planning to take over responsibility for the mill after closing. Until then, all operations continue as is. HEINZEL plans to operate the UPM Steyrermühl site outside of graphic papers as an integrate together with its Laakirchen mill, which is located in the same communicaty. HEINZEL is considering the production of packaging materials to complement their existing product portfolio.
Twin Rivers Paper Company LLC announced today that it has entered into a definitive agreement to acquire the paper mill located in Pine Bluff, Arkansas owned by Mondi Group. Twin Rivers, headquartered in Madawaska, Maine, produces specialty packaging, label, publishing, and technical specialty papers as well as dimensional lumber. It is owned jointly by Atlas Holdings LLC and Blue Wolf Capital. The acquisition is anticipated to be completed in Q2 2018. Terms were not disclosed.
The Pine Bluff mill to be acquired under this Agreement produces Multiwall, Converting and Grocery Bag grade unbleached kraft papers serving a variety of food, agricultural, and industrial applications. With basis weights between 40# and 78#, the mill has a capacity in excess of 140,000 US short tons.
“Twin Rivers is a nimble, high quality, integrated forest products company, well positioned as a market leader in the packaging, publishing, label and technical specialties markets,” said Bob Snyder, Chief Executive Officer of Twin Rivers. “The addition of the Pine Bluff Mill paper is consistent with the evolution of our company and fully complements our overall mill system, product offering, and strategic direction.”
“We are very pleased with the opportunity to add this facility and its valued associates to our company,” said Ken Winterhalter, President of Twin Rivers. “The proposed transaction will provide a logical grade-line extension to our current offerings and clear evidence of our ongoing commitment to enhance the value we provide to our customers.”
“With this Agreement and its recent acquisition of Burrows Paper, Twin continues to strengthen its hold atop the marketplace,” said Tim Fazio, Co-Founder and Managing Director of Atlas Holdings. “This is an exciting step for the business and we look forward to welcoming the team in Pine Bluff to the Twin Rivers family.”
“We are excited to add Pine Bluff to the Twin Rivers portfolio,” said Adam Blumenthal, Managing Partner of Blue Wolf Capital. “The strategic acquisition positions the company well to grow with and better serve its customers and other stakeholders.”
Clembag grBag s Willee, CEO Packaging Paper, Mondi Group, said, “We believe that the interests of the mill and its employees are better served by the new owners where there is a closer long-term strategic alignment.”