Neenah Paper is turning over its Pictou, Nova Scotia mill to Northern Pulp Nova Scotia Corp..

Northern Pulp Nova Scotia Corp. is a newly formed company operated by Atlas Holdings LLC of Greenwich, Conn., and Blue Wolf Capital Management LLC of New York.

Neenah Paper expects to pay approximately $15 million to $20 million to Northern Pulp to assist the new company in its transition to stand-alone status. The deal is a less costly alternative than shutting the plant down, said company spokesman Bill McCarthy.

Northern Pulp Nova Scotia will assume all assets, liabilities, contracts and pension obligations of the mill. The Pictou plant has one machine with annual capacity of 270,000 tonnes, mostly northern bleached softwood kraft pulp.

The sale covers only the mill and associated woodlands operations, while Neenah Paper retains 2,000 square kilometres of Nova Scotia timberland and will supply fibre to the mill.

Sources:
Neenah Paper to Complete Transformation to Premium and Specialty Paper Company with Agreement to Sell Pictou Pulp Mill (Neenah Paper Press Release)
Neenah Paper divests Pictou pulp mill (Toronto Star)
Neenah turning over Nova Scotia mill operations (Forbes)