Potlatch Corp. announced that the company has signed an agreement for the sale of its Cloquet, Minn., pulp and printing papers facilities and associated assets to a subsidiary of Sappi Ltd. for $480 million in cash.
In conjunction with the sale, Potlatch said it will close its remaining printing papers mill in Brainerd, Minn., and exit the coated printing papers business.
In 2001, Potlatch's printing papers segment reported a loss of $36.7 million on revenues of $464 million.
L. Pendleton Sigel, chairman and CEO for Potlatch, said that the sale of the company's coated printing papers assets are part of a strategic realignment of company resources to increase shareholder value by focusing on businesses with greatest potential for growth. Siegel explained that Potlatch will concentrate on the company's natural resource, wood products and consumer tissue businesses, which have demonstrated potential for long-term growth.
He said that the company's paperboard business is currently resolving cost issues and improving product quality at its Lewiston, Idaho, mill to be consistent with the low cost and high quality at its Cypress Bend, Ark., operation.