Twin Rivers Paper announces sale of its Eastern Canada lumber mill to longtime supplier Groupe Lebel
By Twin Rivers Paper CompanyGeneral
Transaction advances Twin Rivers’ focus on core specialty and kraft papers business
Madawaska, ME (Dec. 2, 2022) – Twin Rivers Paper Company, a leading producer of specialty and kraft paper products, has reached a definitive agreement to sell its softwood lumber mill in Plaster Rock, N.B., to eastern Canadian lumber manufacturer and North American forest products leader Groupe Lebel.
Group Lebel is a longtime supplier to Twin Rivers Paper. The transaction includes a long-term supply agreement for the Plaster Rock mill to continue providing Twin Rivers Paper with by-product chips and biomass utilized by the company’s pulp and cogeneration operations in Edmundston, N.B.
“The decision to sell the lumber operation is aligned with our strategy of investing in and growing our core business of specialty and kraft paper production,” stated Tyler Rajeski, Chief Financial Officer of Twin Rivers Paper. “Groupe Lebel has long been a valued supplier to our Edmundston pulp operation and we’re pleased to have found a home for our Plaster Rock team members with a trusted partner. We look forward to expanding our relationship with the completion of this sale.”
Pending regulatory and provincial review, the transaction is expected to close early in the first quarter of 2023.
“We’re committed to ensuring a smooth transition for our Plaster Rock employees, customers and suppliers,” added Rajeski. “With Groupe Lebel’s extensive sawmill operations experience and a proven record of investing in their assets and driving operational improvements, we’re confident this transaction will positively impact mill employees, business stakeholders, and the community of Plaster Rock.”
Stifel is acting as Twin Rivers’ exclusive financial advisor for the transaction.
About Twin Rivers Paper Company
Twin Rivers Paper Company, headquartered in Madawaska, Maine, is an integrated specialty paper manufacturer producing more than half a million tons of paper per year for the publishing, label, technical and packaging sectors. The company operates a pulp mill in New Brunswick, and diverse paper assets in northern Maine, upstate New York and central Arkansas that produce uncoated and coated white papers and natural kraft paper in a broad range of basis weights and finishes. Customized product development and dedicated technical services support are company hallmarks. With U.S. ownership by Atlas Holdings and Blue Wolf Capital, a sound financial structure and a strong balance sheet that fuels continuous investments in its assets, Twin Rivers Paper offers its customers the security of local product availability and the assurance of long-term viability. For more information, visit www.twinriverspaper.com.
About Groupe Lebel
Groupe Lebel is one of the leaders among forest producers in Eastern Canada. The company employs 1,250 people in 16 municipalities in Quebec, two in Ontario and one in the state of Maine in the United States. Groupe Lebel is one of the main lumber manufacturers in Eastern Canada to be vertically integrated, from the cutting of trees to the distribution of finished products. For additional information, visit www.groupelebel.com.