N.Y. firms to buy Madawaska paper mill
Two New York investment firms have reached an agreement to buy a controlling interest in Twin Rivers Paper Co., which operates a Madawaska paper mill for Brookfield Asset Management Inc.
The deal is set to close in three weeks, according to a press release from investors Blue Wolf Capital Partners LLC and Atlas Holdings. The terms of the deal were not disclosed.
In addition to the Madawaska mill, Twin Rivers also operates mills in Edmundston and Plaster Rock, New Brunswick. The company was known as Fraser Papers Co. until 2009, when it filed for bankruptcy. It emerged from bankruptcy in 2010.
The Bangor Daily News reported Twin Rivers employs 1,172 people, with 622 in Maine and 550 in Canada.
The managing partners of the two investment firms told the paper that they plan to expand the product offerings of the Madawaska mill to increase its business in food packaging products, labels and other lightweight paper products that Atlas Holdings managing partner Tim Fazio said are not likely to be displaced by electronic, paperless substitutes.
The investment firms have previously joined to invest in mills operated by the Northern Resources Nova Scotia Corp. and its mill in Pictou, Nova Scotia, and Finch Paper Holdings LLC, which has a pulp and paper mill in Glens Falls, N.Y. The investors own seven companies in the United States that are focused mostly on manufacturing.
In the press release, union and political leaders in Maine and New Brunswick celebrated the deal. Gov. Paul LePage said in a prepared statement that the company has a "track record of successful change in forest product companies."
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