For approximately 360 workers at Florida tissue manufacturer Atlas Paper Holdings, it’ll be "business as usual" while transitioning to ownership by Resolute Forest Products Inc., whose acquisition of the firm was announced this week from Montreal.
Headquartered in Miami, Atlas Paper Holdings offers virgin and recycled fiber products for both at-home and away-from-home usage, with products in a range of grades from economy and value to premium.
"We are excited about becoming part of a larger, diversified company that views the tissue market as a cornerstone of its future," Jim Brown, Atlas president and CEO, said. "This is a win-win: For Atlas Paper, we will benefit from pulp supply efficiencies and offer a wider range of products to our customers once the Calhoun tissue project is up and running. For Resolute, my team can bring the market knowledge and expertise [to] meet our common business objectives."
Resolute expects to keep Atlas Paper's current structure, with most employees — including management — remaining. The purchase price was $156 million. BMO Capital Markets acted as financial advisor and Akerman LLP acted as legal advisor to Resolute.
Atlas operates three tissue machines with an annual production capacity of approximately 65,000 short tons. Its plants feature 14 converting lines in Hialeah (Miami) and Sanford (Orlando), and a Tampa paper recycling facility. The company supplies private label and branded bath tissue, facial tissue and towels; and cocktail, dinner and dispenser napkins to a diverse customer base.
"This is a step-change acquisition that provides us with an immediate position in the multi-billion-dollar North American consumer tissue market," Richard Garneau, Resolute President and CEO, said. "We're following through on our strategy with an acquisition that capitalizes on our unique ability to capture synergies by integrating forward our U.S. market pulp assets.”
Resolute Forest Products manufactures newsprint, specialty papers, market pulp and wood products. The company owns and operates approximately 40 mills and facilities in the U.S., Canada and South Korea, plus power generation assets in Canada, and markets to nearly 80 countries.
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