MONTREAL, March 26, 2013 /CNW Telbec/ - Tembec Inc. ("Tembec") announced
today that it has reached an agreement to sell its NBSK pulp mill and
related assets and liabilities located in Skookumchuck, British
Columbia to Paper Excellence Canada Holdings Corporation ("Paper
Excellence") for a purchase price of $89 million, which includes
working capital. Closing of the transaction is expected to occur in the
second calendar quarter of 2013 and remains subject to certain
conditions and regulatory approvals.
"This transaction supports the continuing transformation of the Company
and the reshaping of its business portfolio," stated Tembec President
and CEO James Lopez.
Tembec acquired the Skookumchuck pulp mill in 1999 as part of the
acquisition of Crestbrook Forest Industries Ltd. This mill, where 290
employees currently work, started up in 1968. Its pulp is shipped to
North American and Asian customers primarily for tissue applications.
BofA Merrill Lynch served as the exclusive financial advisor to Tembec.
Tembec is a manufacturer of forest products - lumber, pulp, paper and
specialty cellulose - and a global leader in sustainable forest
management practices. Principal operations are in Canada and France.
Tembec has some 3,700 employees and annual sales of approximately
$2 billion. Tembec is listed on the TSX (TMB).
This press release includes "forward-looking statements" within the
meaning of securities laws. Such statements relate, without limitation,
to the Company's or management's objectives, projections, estimates,
expectations or predictions of the future and can be identified by
words such as "may", "will", "could", "anticipate", "estimate",
"expect" and "project", the negative or variations thereof, and
expressions of similar nature. Forward-looking statements are based on
certain assumptions and analyses made by the Company in light of its
experience, information available to it and its perception of future
developments. Such statements are subject to a number of risks and
uncertainties, including, but not limited to, changes in foreign
exchange rates, product selling prices, raw material and operating
costs and other factors identified in the Company's periodic filings
with securities regulatory authorities. Many of these risks are beyond
the control of the Company and, therefore, may cause actual actions or
results to materially differ from those expressed or implied herein.
The forward-looking statements contained herein reflect the Company's
expectations as of the date hereof and are subject to change after such
date. The Company disclaims any intention to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, unless required by applicable securities
For further information:
Vice President, Human Resources and Corporate Affairs
Tel.: 416 775-2819