Toronto, Ontario – Fareer Papers Inc. (TSX:FPS) today announced that it has completed the sale of approximately 240,000 acres of timberlands in Maine to Heartwood Forestland Fund V Limited Partnership, an investment vehicle managed by The Forestland Group, LLC, for proceeds of $80.5 million. The company intends to use the proceeds from this transaction for general corporate purposes and for redeployment in its core pulp and paper business.
“The closing of this transaction represents further progress on our strategy to reposition assets to focus on our core paper and pulp operations and allows us to achieve significant value for our timberlands. At the same time, we were able to secure the wood fibre supply required for manufacturing facilities,” commented Dominc Gammiero, Fraser Papers’ President and CEO.
Fraser Papers continues to own approximately 765,000 acres of timberlands in the Province of New Brunswick.
Fraser Papers is an integrated specialty paper company which produces a broad range of technical, and printing & writing pagers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec. Fraser Papers is listed on the Toronto Stock Exchange under the symbol FPS. For more information, visit the Fraser Papers web site at www.fraserpapers.com
Note: This press release contains “forward-looking statements” that are based on certain assumptions and reflect the company’s current expectations. The words “believe,” “expect,” “anticipate,” “intend,” “estimate” and other expressions which are predictions of or indicate future events and trends and which do not relate to historical matters identify forward-looking statements. Reliance should not be placed on forward-looking statements because they involve know and unknown risks, uncertainties and other factors, which may cause the actual results, performance or achievements of the company to differ materially from anticipated future results, performance or achievement expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from those set forth in the forward-looking statements include general economic conditions, interest rates, availability of equity and debt financing and other risks detailed from time to time in the documents filed by the company with the securities regulators in Canada. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.