Resolute Forest to sell Catawba, SC paper and pulp mill for $300M
Resolute Forest Products announced that it has entered into a definitive asset purchase agreement with New-Indy Containerboard, LLC for the sale of its Catawba, South Carolina, paper and pulp mill, for a total purchase price of about $300M, consisting of $260M in cash, subject to customary closing adjustments, and the assumption of approximately $40 million of balance sheet liabilities, largely net pension benefit obligations. Catawba's operation includes a kraft mill and a pulp dryer to produce market pulp, a thermomechanical pulp mill as well as a lightweight coated paper machine. The facility currently employs 460 people. Under the terms of the asset purchase agreement, New-Indy will offer employment to Catawba employees effective upon closing of the transaction, which is expected at or around year-end.