Resolute Forest Products Completes Sale of Bowater Mersey Assets

Dec. 11, 2012 - Resolute Forest Products said that yesterday the province of Nova Scotia, represented by the minister of the Department of Economic and Rural Development and Tourism, completed the purchase of all the shares of Bowater Mersey Paper Company Limited for nominal consideration.

Bowater Mersey is the former joint venture between Resolute (51%) and The Washington Post Company (49%), formed to hold the Mersey newsprint mill, located in Brooklyn, Nova Scotia, and other associated assets, including private timberlands, the Oakhill sawmill and Brooklyn Power Corporation.

Resolute operated the Mersey newsprint mill until it was indefinitely idled in June of 2012.

Before closing the transaction, Resolute purchased from Bowater Mersey the assets associated with the Oakhill sawmill and, in connection with the closing, certain components of the paper mill, which can no longer be used to make paper.

At closing, Resolute received a cash payment of approximately C$18 million, representing a reimbursement of working capital advances by Resolute to Bowater Mersey to fund its operations, net of transaction-related items.

Resolute Forest Products is a global leader in the forest products industry with a diverse range of products, including newsprint, commercial printing papers, market pulp and wood products. The Company owns or operates 21 pulp and paper mills and 22 wood products facilities in the United States, Canada and South Korea.

SOURCE: Resolute Forest Products Inc.