Blue Wolf Capital Partners and Atlas Holdings today announced that they have reached an agreement to acquire a controlling interest in Twin Rivers Paper Company, Inc. (“Twin Rivers”) from Brookfield Asset Management Inc. Terms of the agreement were not disclosed.
The transaction is expected to close in approximately three weeks, allowing time for certain procedural requirements. Blue Wolf and Atlas, both New York-based private investment firms, have long track records of building forest products companies in North America.
Twin Rivers, with facilities in Edmundston and Plaster Rock, New Brunswick, and Madawaska, Maine, has been a vital economic engine for the region for over 80 years, producing specialty papers and lumber for a variety of markets. Through the acquisition of a controlling stake in Twin Rivers, Atlas and Blue Wolf are showing their commitment to the future of the business, and will work with the company in the development of its long-term capital and growth plans.
“Twin Rivers produces specialty papers and lumber products that are well regarded throughout the industry. Our plan is to build on these strengths as we seek to position the operations for long-term success and as a key contributor in the revitalization of the forest products sector in Maine and New Brunswick,” said Adam Blumenthal, Managing Partner of Blue Wolf.
“With the active support, direction and guidance our firms bring, we believe we can provide Twin Rivers with additional resources to address its capital needs, cost structure, market exposure and other critical operational challenges presented by the highly competitive forest products industry,” said Tim Fazio, Managing Partner of Atlas Holdings.
Twin Rivers is a major employer in New Brunswick and northern Maine, and the acquisition was welcomed by a wide variety of constituencies.
“We have a proud history in our forest sector and certainly recognize the strategic importance of the Twin Rivers operation. The local communities and our entire forest sector value the jobs and role that Twin Rivers plays. We are excited to have new partners such as Atlas and Blue Wolf invest in the Province and commit to growing this operation and working with us as we continue to rebuild our economy,” said David Alward, Premier of New Brunswick.
“We welcome Blue Wolf and Atlas to our State,” added Maine Governor Paul LePage. “These investors have a track record of successful change in forest products companies, and we look forward to working with them as they implement their strategy.”
Dave Coles, President of the Canadian Energy and Paperworkers Union, which represents workers at Twin Rivers’ operations in Edmundston and Plaster Rock, New Brunswick said, “We have long represented workers at companies owned by Atlas and Blue Wolf, and we know them to be thoughtful and creative investors who are committed to the industry. We will work with the new ownership to protect jobs and pensions for our active and retired members.”
“We welcome this change of ownership, to a group we know well,” said Jon Geenen, International Vice President of the United Steelworkers of America, which represents workers at Twin Rivers’ Madawaska, Maine paper mill. “We expect the new owners will be dedicated to ensuring the sustainability of this company into the future.”
Together, Blue Wolf and Atlas Holdings have a depth of experience in successfully collaborating with stakeholders to build investee companies into sustainable, highly competitive enterprises in both Canada and the United States – including, Northern Resources Nova Scotia Corporation (“Northern Resources”), a pulp mill located in Pictou, Nova Scotia, and Finch Paper Holdings LLC, an integrated pulp and paper business located in Glens Falls, New York.
Separately, Atlas Holdings has been investing and operating in the forest products, packaging and paper industries since 1999. Atlas currently owns approximately 30 locations in North America, Europe and Asia focused on these markets, employing more than 5,000 people. Blue Wolf has been investing in the forest products industry since 2007, and currently owns seven companies in the United States, primarily manufacturing businesses, including two building products companies.
“Twin Rivers has been vital to the region’s economy for over 80 years, and we want to ensure it continues to be,” said Blumenthal. “We look forward to working with all stakeholders to create a viable, stable and long-term future for Twin Rivers and the forestry sector in both countries.”