MONTREAL, Oct. 31, 2016 /CNW Telbec/ - Tembec announced today that it closed the sale of its sawmill and related forestry assets located in Senneterre, Quebec to Resolute Forest Products. The sale also included certain working capital items. The Company received proceeds of approximately $9 million on closing, subject to potential working capital adjustments. The transaction will not give rise to a gain or loss as the assets were sold at their carrying values.
This transaction included the transfer of all the employees (103 unionized and 21 non-unionized employees). Tembec acquired the mill in 2003 from Nexfor Inc. and Norbord Industries Inc. The Company's lumber capacity is now 755 million board feet per year, down from 855 million board feet prior to the sale.
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 approximately 3,000 employees and annual sales of approximately $1.5 billion. Tembec is listed on the Toronto Stock Exchange (TMB).
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