West Fraser Timber Co. Ltd. (TSX,NYSE:WFG) has sold pulp mills it owns in B.C. and Alberta to Atlas Holdings for $164 million.
West Fraser today announced it has closed on a previously announced deal to sell its pulp mills in Quesnel and Slave Lake Alberta to Atlas. The previously announced deal was said to be worth US$120 million.
Atlas, an American company, owns and operates several pulp and paper mill in Canada and the U.S. It also owns Millar Western Forest Products in Alberta, which will operate the two pulp mills.
As part of the sale, Atlas will maintain woodlands and timber holdings in Alberta associated with the Slave Lake mill, and a long-term fibre supply agreement associated with the Quesnel River Pulp mill.
"We would like to thank our dedicated employees for their many years of service to West Fraser and the communities of Quesnel and Slave Lake," West Fraser CEO Sean McLaren said in a news release.
"The sale of these two pulp assets, along with the disposition of Hinton Pulp earlier this year, enables West Fraser to focus its resources on becoming the premier building products company in North America."
