Sappi Limited, a leading global producer of dissolving wood pulp, specialities and packaging papers, graphic papers and biomaterials, today announced that all conditions precedent relating to the acquisition of the Matane high yield hardwood pulp mill in Quebec Canada from Rayonier Advanced Materials (RYAM) have been fulfilled and closing has been completed.
The main benefits of the acquisition include:
-Increases Sappi's pulp integration for its fast-growing packaging businesses in both North America and Europe
-Supports Sappi's 2020Vision to grow in higher margin growth segments
-Reduces Sappi's cost of pulp
-Reduces the volatility of earnings through the pulp cycle
-Establishes certainty of supply for Sappi's increasing need for high yield pulp to support its recent investments
-Will enable 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
-Leverages Sappi's global pulp expertise to profitably sell market pulp to strategic customers and segments
Commenting on the transaction Steve Binnie, Chief Executive Officer of Sappi Limited, said: "I am very pleased that we have been able to finalise this acquisition so quickly. This acquisition will provide Sappi with both cost reductions and decreased volatility at a very competitive price per ton of pulp. The transaction strengthens Sappi's pulp integration, improves our profitability and is another significant milestone towards realizing our Vision2020 goal."