Quesnel River and Slave Lake pulp mills are to be operated by Atlas' subsidiary Millar Western Forest Products upon the closure of the transaction.
West Fraser Timber will sell the Quesnel River Pulp mill and the Slave Lake Pulp mill in Canada to Atlas Holdings for a combined total cash proceeds of $120m. Today, the companies announced the signing of a definitive purchase and sale agreement for the two pulp mills in British Columbia and Alberta. The agreement also includes related woodlands operations and timber holdings in Alberta and a long-term fibre supply agreement for the Quesnel River Pulp facility, West Fraser and Atlas announced.
Atlas Holdings already owns and operates several pulp, paper and wood products businesses in Canada and the United States. Upon closing of the transaction, the Quesnel River and Slave Lake pulp mills will be operated by Atlas' subsidiary Millar Western Forest Products. "Millar Western is a more than 100-year-old Canadian forest products company headquartered in Edmonton with existing pulp mill operations in Alberta, establishing a strong foundation and a bright future for the Quesnel River and Slave Lake pulp mills," West Fraser announced.
The two mills produce bleached chemi-thermomechanical pulp (BCTMP). West Fraser puts the total production capacity for BCTMP at 690,000 t with output at 580,000 t in 2022.