Rayonier Advanced Materials Sells Resins Business to LRBG Chemicals for $16.5 Million
Rayonier Advanced Materials resins business produces chemical resins used in the manufacturing of oriented strand board (OSB), hardboard and other engineered wood products.
Sept. 20, 2018 - Rayonier Advanced Materials (“RAM”) on Sept. 19 announced that it has sold its resins business to LRBG Chemicals, a company to be led by the current resins business management team, for a purchase price of approximately $16.5 million.
The resins business, with manufacturing locations in Longueuil, Quebec and Toledo, Ohio, produces chemical resins used in the manufacturing of oriented strand board (OSB), hardboard and other engineered wood products. The business was originally acquired as part of the RAM's acquisition of Tembec in November of 2017.
“The sale of resins business allows us to divest a non-core petroleum-based chemical asset,” said said Paul G. Boynton, Chairman, President and Chief Executive Officer of Rayonier Advanced Materials. “Further, it provides our stockholders with a fair value and incremental cash to be redeployed through our capital allocation process focused on risk adjusted returns.
“I want to personally thank the resins management team and employees for their dedicated work at Rayonier Advanced Materials. I wish them well as they begin a new chapter as a standalone company,” Boynton added.
Rayonier Advanced Materials is a global leader of cellulose-based technologies, including high purity cellulose specialties, a natural polymer commonly found in cell phones, computer screens, filters and pharmaceuticals. To learn more, please visit: www.rayonieram.com.
SOURCE: Rayonier Advanced Materials Inc.