THUNDER BAY — The Resolute Forest Products pulp and paper mill in Thunder Bay will be sold to Greenwich, Connecticut-based Atlas Holdings, a private equity firm.
According to a joint announcement Tuesday morning, the transaction is expected to close in the second half of the year following regulatory approvals.
A spokesperson for Resolute told TBnewswatch the purchase price is just under US$ 220 million.
The sale of the mill was a condition attached to the federal Competition Bureau's approval of the acquisition of Resolute by Paper Excellence Group last year.
Atlas was founded in 2002, and operates 26 companies with over 300 facilities worldwide in a diverse sectors including pulp and paper, wood products, packaging, power generation, building materials, aluminum processing and construction services among others.
It and its affiliates generate about $16 billion in revenue annually.
The Thunder Bay mill is a leading northern bleached softwood kraft and northern bleached hardwood kraft pulp, paper and newsprint producer.
Upon closing of the transaction, the plant will operate as a standalone company.
"We are extremely excited about the opportunity at Thunder Bay," said Atlas principal Daniel Merriam. "Atlas is the ideal owner to take this great operation into its next chapter as a strong and independent company. As always,we will partner with strong local leadership to strengthen Thunder Bay's operations...and to strongly support the local and regional community."
Atlas partner Neil Mahajan added "Many Atlas businesses are landmark companies in their regions, just as the Thunder Bay mill has been since 1919. 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."
Resolute said in a statement that the parties intend to enter into a long-term woodchip and biomass supply agreement, under which Resolute will continue to provide chips and biomass to the Thunder Bay mill from its other operations in Northwestern Ontario.
"The mill is an exceptional asset," said Resolute president and CEO Remi Lalonde. "I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future, and I sincerely wish them the best."
This is the second major transaction this year in Northwestern Ontario's forest industry.
Paper Excellence, which purchased Domtar Corp. in 2021, struck a deal in February to sell the Dryden pulp mill to First Quality Enterprises, a New York-based manufacturer of tissue products.
This sale was also required to address the Competition Bureau's concerns that Paper Excellence's dominance would significantly lessen competition for certain products.
NOTE: A previous version of this story has been updated to include the value of the transaction.
