Company also sells off its stake in Arizona short line railroad.
Catalyst Paper, based in Richmond, British Columbia, Canada, has accepted a bid to sell its closed recycled-content newsprint mill in Snowflake, Ariz., as well as its shares of the nearby short line Apache Railway.
According to a news release issued by Catalyst, Los Angeles-based Hackman Capital and its affiliates have agreed to purchase the Arizona properties for $13.46 million “and other nonmonetary considerations.” The final acceptance of the bid is subject to U.S. court approval.
The buyer intends to continue to operate the Apache Railway as a going concern, according to the news release, but does not state an intention to re-start the mill. The transaction is supported by the town of Snowflake “and various local interests,” according to Catalyst Paper.
“We are pleased that this transaction has progressed efficiently and that the community’s interests have been considered through the process and in the successful bid,” says Catalyst Paper President and CEO Kevin Clarke. “While paper manufacturing is part of Snowflake’s past, this transaction puts the asset on a path to a new future that can continue to bring value to the region.”
The sale is expected to be complete in the first quarter of 2013 and is subject to various closing conditions.