Industrials | Mergers & Acquisitions

Resolute Completes Sale of Catawba to New Indy Containerboard

  • TM Capital served as exclusive financial advisor to Resolute Forest Products Inc. (NYSE: RFP) in the sale of its Catawba, South Carolina pulp and paper mill to New Indy Containerboard for approximately $300 million, including the assumption of approximately $40 million of balance sheet liabilities, largely net pension benefit obligations
  • The Catawba mill is engaged in the production of kraft (virgin) pulp and coated papers; it is one of the larger softwood kraft mills in the US South, a low cost timber region
  • Industry observers expect New Indy to convert the mill to the production of kraft linerboard, the primary component in the manufacture of corrugated boxes
  • Resolute Forest Products is a major producer of lumber, woodchips, wood pulp and paper products including newsprint, coated papers and tissue
  • New Indy Containerboard is a joint venture between The Kraft Group and Schwarz Partners; apart from Catawba, it owns and operates four mills in the United States focused on the production of recycled containerboard and custom packaging solutions

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Client Testimonial

This transaction will allow us to realize significant value for an asset whose greatest earnings potential lies with the investment in and diversification of the mill's operations, as proposed by New-Indy.  We are pleased that the mill will continue to operate and benefit the local community, both economically and socially."
Yves Laflamme, President & CEO, Resolute Forest Products