NEW GLASGOW, Nova Scotia (CP) -- Northern Pulp Nova Scotia Corporation has completed the purchase of the Neenah Paper kraft pulp mill at Abercrombie Point.
The new owner, an affiliate of U.S.- based Atlas Holdings and Blue Wolf Capital Management, takes over under the terms of the sale announced in mid-May.
As part of the agreement, Neenah paid an additional $1.8 million at closing, with a final $10 million payment to be made in the third quarter.
Mill Manager Keith Johnson says the new stand-alone company's structure will make it competitive in a challenging pulp and paper business environment.
Northern Pulp will assume all assets and liabilities associated with the mill operations as well as existing customer contracts, supply agreements, labor agreements and pension obligations.
It will also manage Neenah's forest land holdings under a long term agreement and will continue to harvest wood fiber from Crown licensed lands and privately held forest land.