Tembec Inc. announced March 26 it is selling its NBSK pulp mill in Skookumchuck to Paper Excellence Canada Holdings Corporation (Paper Excellence) for $89 million.

The purchase, expected to be finalized in a few months, will include working capital. The company noted in a press release that the sale remains subject to certain conditions and regulatory approvals.

The mill currently employs 290 people.

“This transaction supports the continuing transformation of the company and the reshaping of its business portfolio,” stated Tembec President and CEO James Lopez.

Tembec acquired the Skookumchuck pulp mill in 1999 as part of the acquisition of Crestbrook Forest Industries Ltd.

The Skookumchuck mill started up in 1968 and its product is shipped to North American and Asian customers primarily for tissue applications.

BofA Merrill Lynch served as the exclusive financial advisor to Tembec.

Tembec is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose – and a global leader in sustainable forest management practices. Principal operations are in Canada and France. Tembec has some 3,700 employees and annual sales of approximately $2 billion. Tembec is listed on the TSX (TMB).

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