KAUKAUNA, Wisconsin -- Expera Specialty Solutions, LLC, a portfolio company of KPS Capital Partners, LP, announced today that it has entered into a definitive agreement to acquire certain assets related to the Old Town Fuel & Fiber pulp mill in Maine from its senior secured lender.
Expera expects to complete the transaction as part of a sale process under Section 363 of the United States Bankruptcy Code. Financial terms of the transaction were not disclosed.
Old Town is a high-quality pulp mill with the capacity to produce more than 200,000 tons annually of Northern Bleached Kraft pulp. The Business was founded more than a century ago and is located in Old Town, ME. The Business closed this past August, which left the mill shut down indefinitely. Expera intends to invest significant additional capital and resources into OldTown to ensure the highest level of production quality and capacity.
Russ Wanke, Chief Executive Officer of Expera, stated, "A combination of Expera and Old Town will significantly strengthen both businesses. In particular, the combination will increase Expera's vertical integration into pulp and reduce Old Town's go-forward commercial risk by becoming part of Expera, a financially strong enterprise, that serves stable and growing end markets and possesses a dedicated base of long-term customers rather than as a standalone enterprise."
Governor Paul R. LePage of Maine stated, "I am honored to welcome Expera to Maine. We appreciate their investment and determination to get this facility back up and running as quickly as possible. The Old Town facility combines a valuable asset with tremendously knowledgeable and hardworking Mainers who are eager to get back to work. My administration will continue working with Expera as they move forward. This is terrific news for the future of Maine's forest products industry."
US Senator Susan Collins of Maine commented, "This is encouraging news for Maine's forest products industry and for the workers in the Old Town area who lost their jobs earlier this year. While there is much work to be done before this sale is finalized and people are brought back to work, I applaud the efforts of Expera Specialty Solutions and all those involved in this effort."
US Senator Angus King of Maine additionally expressed, "This is great news for the Old Town area and the State of Maine. Expera will find a great workforce with deep experience at this mill who I'm sure will be happy to get back to work doing what they have done so well over the years."
Completion of the transactions is expected to occur during the fourth quarter of 2014, subject to customary closing conditions. |
