White Birch Paper to Buy SP Newsprint Company
Jan. 21, 2008 - Privately-held SP Newsprint Co. on Friday (Jan. 18) said that it has entered into an agreement with certain affiliates of Peter Brant, who is the controlling shareholder of White Birch Paper Company, to be acquired for $350 million in an all-cash transaction.
SP Newsprint expects the deal to close sometime before the end of April 2008 and that the company will become a subsidiary of White Birch Paper.
The sale includes SP's two newsprint mills in the United States as well as SP Recycling Corp., SP Newsprint's wholly owned recycling subsidiary.
"SP Newsprint's world-class assets, power generating facilities and recycling organization present a compelling opportunity," said Peter Brant, chairman & chief executive officer, White Birch Paper. "This acquisition is expected to broaden our geographic ability to supply our U.S. and foreign customers and provide White Birch Paper with a strong platform to expand in the recycling business."
Financing is being underwritten by GE Corporate Lending and arranged by GE Capital Markets, SP Newsprint said.
ABOUT THE COMPANIES
SP Newsprint Co. (SP) is a general partnership among affiliates of Cox Enterprises, Inc., Media General, Inc. and The McClatchy Company. Headquartered in Atlanta, Georgia, the company operates newsprint mills in Dublin, Georgia, and Newberg, Oregon as well as SP Recycling Corp, a wholly owned fiber procurement subsidiary with facilities primarily in the Southeast and Western portions of the United States. Annual newsprint production totals approximately one million tons.
White Birch Paper is the second largest producer of newsprint in North America with production totaling approximately 1.35 million metric tons. The company's manufacturing facilities are located in Riviere du Loup, Quebec, Ashland, Virginia, Quebec City, Quebec, and Gatineau, Quebec. In addition to newsprint, the company produces directory paper and paper board products.
SOURCE: SP Newsprint