Skip to main content

The Globe and Mail

Resolute enters tissue market with $156-million purchase of Atlas Paper

A Resolute Forest Products pulp and paper mill in Fort Frances, Ont., is pictured on Nov. 14 2014.

Fred Lum/The Globe and Mail

Resolute Forest Products is entering the tissue market earlier than planned after buying Florida producer Atlas Paper Holdings for $156-million (U.S.), including working capital.

Atlas, with 360 employees, makes branded and private label tissue products from virgin and recycled fibres, with an annual production of 59,000 tonnes.

Resolute indicated no layoffs were planned.

Story continues below advertisement

Prior to the Atlas takeover, the company was already planning to enter the multibillion-dollar North American tissue market, investing $270-million to produce about 60,000 tonnes of tissue at its plant in Calhoun, Tenn., by early 2017.

Like other forestry companies, Resolute is looking for ways to offset the declining demand for newsprint and commercial paper.

The purchase price includes unspecified working capital. Resolute expects Atlas will generate about $23-million in annualized pre-tax operating earnings starting in the first quarter.

Report an error
Comments

The Globe invites you to share your views. Please stay on topic and be respectful to everyone. For more information on our commenting policies and how our community-based moderation works, please read our Community Guidelines and our Terms and Conditions.

Please note that our commenting partner Civil Comments is closing down. As such we will be implementing a new commenting partner in the coming weeks. As of December 20th, 2017 we will be shutting down commenting on all article pages across our site while we do the maintenance and updates. We understand that commenting is important to our audience and hope to have a technical solution in place January 2018.

Discussion loading… ✨