Skookumchuck Pulp completes C$95 million acquisition of BC pulp mill
May 17, 2013
95.00 Million CAD
On May 17, 2013, Tembec Inc. (Tembec) announced the closing of the sale of its NBSK pulp mill and related assets located in Skookumchuck, British Columbia to Skookumchuck Pulp Inc., a subsidiary of Paper Excellence Canada Holdings Corporation (Paper Excellence). Total consideration for the transaction is C$94.6 million, including C$25.5 million in working capital. The purchase price remains subject to closing working capital adjustments.
Approximately 280 employees are included in the transaction. Tembec acquired the pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd.
Paper Excellence, headquartered in Richmond, British Columbia, is a large pulp mill operator.
Tembec, headquartered in Montréal, Québec, is an integrated Canadian forest products company.
McCarthy Tétrault LLP advised Skookumchuck Pulp, the acquiror, with respect to pensions and benefits matters, with a team led by Gregory Winfield.