MONTREAL — Resolute Forest Products Inc. says it has reached a deal to sell a pulp and paper mill in South Carolina for about $385 million to New-Indy Containerboard LLC.
The price for the Catawba, S.C. mill includes about C$333.5 million (US$260 million) in cash plus assumption by the buyer of about $51.5 million of largely pension-based liabilities.
Resolute says the sale allows it to cash out of an operation that requires new investment and diversification to boost earnings.
It says New-Indy has proposed to take on the upgrades at the operation that employs 460 people.
Resolute says it will put the proceeds of the sale towards paying down debt as it continues to explore opportunities to expand its core businesses.
The Montreal-based company said at the end of August that it would also sell its Fairmont, W. Va. pulp mill for $70 million to Nine Dragons Paper Ltd.
Companies in this story: (TSX:RFP)
The Canadian Press