Vancouver-based Fortress Paper Ltd.’s stock price shot up more than 22% this morning, following the company’s announcement of a deal to sell its Dresden mill for $213 million.
Under the share-purchase deal, Fortress will sell its wholly owned subsidiary, Dresden Papier GmbH, to Glatfelter Gernsbach GmbH & Co. KG for €160 million ($213 million), subject to working capital adjustment.
The deal is expected to close in 2013’s second quarter and no later than June 30, 2013.
Fortress president and CEO Chadwick Wasilenkoff welcomed the deal.
“The sale of the Dresden mill is an important step for Fortress Paper becoming a more focused global leader in the dissolving pulp industry,” he said. “The transaction was part of our strategic plan to achieve significant liquidity to enhance future growth opportunities.”
As of press time, Fortress’ stock had shot up more than 22% to $10.84; however, it remained far below its 52-week high of $30.42.
