AbitibiBowater to Sell Arizona Newsprint Mill to Catalyst
Feb. 11, 2008 - AbitibiBowater today said that it has signed a definitive agreement with Catalyst Paper for the sale of its Snowflake, Arizona newsprint mill, in a cash deal for $161 million.
The purchase price excludes about $19 million in trade receivables, which AbitibiBowater will retain.
The mill has an annual production capacity of approximately 375,000 tonnes of newsprint, which will boost Catalyst's capacity to about 980,000 metric tonnes.
AbitibiBowater said it plans to use the proceeds from the sale to repay debt and for general corporate purposes.
AbitibiBowater expects the deal to close in the second quarter.