Atlas Holdings has agreed to acquire the pulp, newsprint and directory paper mill operations in Thunder Bay, Ontario, of Resolute Forest Products.
No financial terms were released. The deal is expected to close in the second half of 2023, subject to regulatory approvals.
The Thunder Bay mill is a northern bleached softwood kraft and northern bleached hardwood kraft pulp, paper, newsprint and directory producer. Resolute’s intention to sell it was announced by Resolute’s owner, Paper Excellence, in October 2022.
Upon the deal’s closing, the Thunder Bay mill will operate as a standalone company and a member of Atlas’ global family of manufacturing and distribution businesses. The parties will enter into agreements pursuant to which Resolute will continue to provide chips and biomass to the mill.
“Many Atlas businesses are landmark companies in their regions, just as the Thunder Bay mill has been since 1919,” said Atlas partner Neil Mahajan in a statement. “We understand Thunder Bay’s importance as a pillar of the local economy, and we look forward to bringing our deep experience in pulp and paper as we convert the mill into a stable, independent enterprise and build a bright future for Thunder Bay.”
Atlas is a private investment firm headquartered in Greenwich, Connecticut. It owns and operates 26 manufacturing and distribution businesses in the automotive, building materials, business services and solutions, construction, energy, food and beverage, industrial services, metals, packaging, printing, pulp, paper and logistics industries.
Resolute, a Montreal-based producer of a diverse range of wood, pulp, tissue and paper products, is a subsidiary of Domtar Corp and a part of the Paper Excellence Group.