Madison Paper Industries Mill Assets Sold to Investor Group
Joint venture of New Mill Capital Holdings, Perry Videx, and Infinity Asset Solutions will look to repurpose the mill site for alternative uses.
Madison Paper Industries in Maine, which ceased paper production on May 21, 2016, had the capacity to produce 195,000 tons per year of supercalendered (SC) paper.
Dec. 30, 2016 - A Joint Venture of New Mill Capital Holdings of New York, Perry Videx of Hainesport, New Jersey and Infinity Asset Solutions of Toronto has acquired the mill assets of Madison Paper Industries from UPM-Kymmene Inc. and Northern SC Paper Corp. The acquisition includes the real estate of the main paper mill site as well as all mill equipment.
"We are excited to be the new owners of the Madison mill and look forward to working with local and state officials to identify new uses for the mill site," said Gregory Schain, Principal of New Mill Capital Holdings. "Bringing new economic life to the property is a key component to this investment for us, and we feel the site's ample infrastructure and the strong area labor force will be attractive for new industries."
In mid- March of 2016, UPM announced the end of its partnership with Northern SC Paper Corp. and as a result, the partnership's paper business — Madison Paper Industries — would close by the end of May at the latest.
Production of paper at the mill ceased on May 21. The closure reduced UPM's capacity of supercalendered (SC) paper in the U.S. by 195,000 tons. The mill employed 214 people.
The new owners plan to sell certain mill assets that are no longer usable on the property, as well as demolish some structures that are obsolete. Once that process is complete, the property will be remarketed for alternative industrial uses. Given the site's abundant supply of both power and natural gas, as well as a clear height of over 50 feet, the property is a uniquely attractive asset for a variety of heavy industries.
“Our joint venture specializes in sales and partnerships that put idled industrial assets back to productive use, and that will be our primary focus here as well,” said Leslie Amoils, President of Infinity Asset Solutions.
“Because most of the mill was built in 1980, both the buildings and equipment assets are among the newest of any shuttered paper mill in the Northeast,” added David Goodman, Executive Vice President of Perry Videx. “Additionally, they have been maintained extremely well over the years.”
The transaction closed on December 29, 2016, for an undisclosed price.
New Mill Capital provides comprehensive asset solutions for the industrial marketplace. Primary services include turnkey acquisitions of closed industrial plants, industrial redevelopment and value-add real estate acquisitions, equipment liquidation and monetization, webcast and online auctions, and traditional sales transactions.
SOURCE: New Mill Capital Holdings, and UPM-Kymmene
See related story:
» UPM to Close Madison Paper Industries in Maine by End-May (March 16, 2016)