Fortress Paper agrees to sell Lebel-sur-Quevillon pulp mill and sawmill assets for $15.36M
(Vancouver, June 23, 2016) Fortress Paper Ltd. is pleased to announce that it has, through its wholly owned subsidiaries, Fortress Global Cellulose Ltd. and Fortress Lumber Corp., entered into an asset purchase agreement with LSQ Energy, L.P. and LSQ Development, L.P., each a wholly-owned subsidiary of Nexolia Bioenergy Inc., providing for the sale of the buildings, equipment and other ancillary property relating to the non-operating pulp mill and sawmill, as well as the energy generation, connection and transmission plant and related equipment, located in Lebel-sur-Quévillon, Québec (the LSQ Mill) for an aggregate purchase price of $15.36 million. Pursuant to the terms of the APA, the Company has agreed to guarantee certain limited representations and warranties of the Vendor. The transaction is expected to close on or before July 8, 2016.
Yvon Pelletier, President and Chief Executive Officer of Fortress Paper, commented: “The sale of the LSQ Mill represents a divestiture of a non-core asset which will release the Company from a number of future obligations and allow it to focus on other value enhancing transactions to grow its business.” (Source: press release)