Rayonier Advanced Materials Completes Sale Of Lumber And Newsprint Assets

Rayonier Advanced Materials Inc. (NYSE: RYAM) (the “Company”) announced today that it has completed its previously announced sale of its lumber and newsprint assets (the “Purchased Assets”) to GreenFirst Forest Products Inc. (“GreenFirst”), a Canadian lumber company, for a total purchase price of approximately US$235 million, subject to final adjustments. The total purchase price is payable approximately 85 percent in cash and 15 percent of common shares in GreenFirst (the “Green First Shares”), which is subject to a six-month holding period. Notably, RYAM retained all the cash generated by the Purchased Assets prior to closing plus rights and obligations related to all softwood lumber duties, including any potential interest on the duties, previously paid to the U.S. Department of Commerce of approximately $110 million. As previously disclosed, the proceeds will be used to repay debt and make strategic capital investments focused on the High Purity Cellulose segment.

As mentioned above, Rayonier A.M. Canada G.P., a wholly-owned subsidiary of the company, was issued 28,684,433 GreenFirst Shares at a deemed price of approximately $1.19 per share representing an aggregate amount of approximately $34,134,475. Prior to the transaction, Rayonier A.M. Canada G.P., did not own or have control or direction over any GreenFirst Shares. Following the transaction, Rayonier A.M. Canada G.P., beneficially owns 28,684,433 GreenFirst Shares representing approximately 16.2% of the issued and outstanding common shares of GreenFirst. Neither Rayonier A.M. Canada G.P. nor the Company does not have any current plans or future intentions to buy or sell further GreenFirst Shares, to solicit proxies or to otherwise participate in any significant transaction involving GreenFirst. Rayonier A.M. Canada G.P. intends to review its investment on a continuing basis and may in the future purchase or sell securities or otherwise engage in activities related to GreenFirst.
https://investors.rayonieram.com/news-releases/news-release-details/rayonier-advanced-materials-completes-sale-lumber-and-newsprint

Related Posts

Fortress Paper Provides Operational Update on its Landqart Mill

Fortress Paper Ltd. announces that its wholly-owned subsidiary, Landqart AG, has received notices from one of its significant international customers cancelling that portion of purchase orders which were scheduled for production and delivery by the Landqart Mill in the fourth quarter of 2017 and in fiscal 2018. The cancelled purchase orders represent approximately 16% of the budgeted order book at the Landqart Mill for fiscal 2017 and 30% for fiscal 2018. Despite other suppliers experiencing similar cancellations, Landqart continues to have dialogue with the customer to potentially reinstate all or a portion of the cancelled orders over an extended period of time within fiscal 2018. There are no assurances that any reinstatement will be forthcoming. Management is seeking to fill the production void caused by the cancellations and is deploying various strategies, including: (a) pulling forward existing purchase orders, (b) seeking new orders from existing and new customers, and (c) requesting special one-time supplemental orders from existing customers for immediate production. Click Read More below for additional information.

UPM Plywood starts using a new sustainable WISA BioBond gluing technology

UPM Plywood starts using a new sustainable lignin based WISA BioBond gluing technology in plywood manufacturing. In the new technology 50% of the fossil-based phenol has been replaced with lignin obtained as a by product of kraf pulp production. "Our long term goal has been to develop a gluing technology that utilizes lignin as raw material. The technological breakthrough that now has been achieved is the most significant innovation in plywood gluing in five decades" says Susanna Rinne, Vice President, Business Development at UPM Plywood. UPM Plywood plans to take the new gluing technology into use gradually in all of its plywood mills. Click Read More below for additional detail.

GP to Expand Dixie Capacity in Lexington, Ky.; Will Close Operations in Easton, Pa., End of 2021

Georgia-Pacific announced that it will expand its Dixie to Go/PerfecTouch® cup manufacturing capacity at the Lexington, Kentucky, Dixie facility. This will allow GP to scale its efforts and create a single, world-class manufacturing facility for cupmaking. As part of this, GP will permanently close its Lehigh Valley Dixie cup manufacturing facility in Easton, Pennsylvania, by the end of 2021. Lehigh Valley will continue to make cups to support the business for the next several months as some of its cupmaking equipment is relocated to the Lexington site. With the closure of the Lehigh Valley plant, it means that after 2021 all Dixie cups, including premium hot cups, recycled fiber cups and bath cups, will be made at the Lexington plant. Approximately 190 jobs at the Lehigh Valley facility will be impacted by this closure, while approximately 50 jobs will be created by the expansion in Lexington. As we work through this transition, no supply disruption is anticipated.
Back To Top
×Close search
Search