Pulp Invest LLC, a management buy-out vehicle, has acquired Sylvamo's Russian operations, including the Svetogorsk pulp and paper mill and long-term harvesting rights, for $420m.
US-based international paper company Sylvamo has finalised the sale of its Russian operations. The company announced that it had sold its activities in Russia, including the Svetogorsk pulp and paper mill and long-term harvesting rights on 3,480 km² of government owned forest land, to Pulp Invest Limited Liability Company, a management buyout vehicle, for a total consideration of $420m. The cash proceeds, after deduction of all transaction and exchange rate fees, amount to $390m. According to Sylvamo, $325m of this amount are intended to be used for debt repayment.
The Svetogorsk mill employs 1,700 people and is geared for annual production capacity of approximately 650,000 tpy of market pulp, paper, and board. The mill produces 380,000 t of woodfree uncoated paper, 120,000 t of liquid packaging board and 155,000 t of BCTMP market pulp.
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