Expera Specialty Solutions, LLC to acquire Maine pulp mill
KPS Capital Partners, LP, the parent company of Rhinelander’s Expera paper mill has announced it plans to acquire assets of the Old Town Fuel and Fiber pulp mill in Old Town, Maine.
Old Town is a pulp mill with the capacity to produce more than 200,000 tons annually. The century old business was shut down in August, leaving nearly 200 employees jobless. According to a press release, Expera intends to invest significant additional capital and resources into Old Town to ensure the highest level of production quality and capacity.
Russ Wanke, CEO 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.”
Expera expects to complete the transaction as part of a sale process under Section 363 of the U.S. Bankruptcy Code. Financial terms were not disclosed; the transaction is expected to be complete during the fourth quarter of 2014, subject to customary closing conditions.