Richmond-based Catalyst Paper Corp. (TSX:CTL) plans to acquire an Arizona recycled paper mill from AbitibiBowater for US$161 million.
The deal to acquire the Snowflake, Arizona, mill is expected to close in the second quarter of 2008, subject to customary closing conditions and regulatory and U.S. Department of Justice approval.
Catalyst will be acquiring one of the lowest-cost newsprint mills in North America. It has annual earnings before interest, taxes, depreciation and amortization of US$30 million. For the year ending September 30, 2007, the mill's revenue was US$185 million.
The mill is energy self-sufficient and can sell excess electricity onto the power grid. It is also the only newsprint mill within a 1,600-kilometre radius.
Catalyst Paper's share price range during the past week: between $1.35 and $1.48; 52-week high: $4.06; 52-week low: $1.19.