Neenah Paper Completes Sale of Pictou Pulp Mill and Transformation to Premium and Specialty Paper Company

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[{"type":"text","content":"\n\n\n\nALPHARETTA, Ga., June 24 /CNW/ -- Neenah Paper, Inc. (NYSE: NP) announced\ntoday that it had completed the sale of its Pictou pulp mill to Northern Pulp\nNova Scotia Corporation ("Northern Pulp"), a new operating company of Atlas\nHoldings LLC ("Atlas") and Blue Wolf Capital Management LLC ("Blue Wolf"). The\nintended transaction was originally communicated in a press release on May 15,\n2008; and terms of the sale are consistent with this earlier release.\n\n\nAs part of the agreement, Neenah Paper paid an initial $1.8 million to\nNorthern Pulp at closing. A second and final payment of $10 million will be\nmade in the third quarter. In return, Northern Pulp has assumed all assets and\nliabilities associated with the Pictou operations, as well as existing\ncustomer contracts, supply agreements, labor agreements and pension\nobligations. As previously indicated, the transaction is expected to be\nsignificantly cash positive to Neenah Paper as a result of tax benefits that\nwould be realized over the next one to three years.\n\n\nFollowing this sale, Neenah Paper will become a pure premium paper and\nspecialty products company and no longer own any pulp mills. The company will\ncontinue to own 500,000 acres of timberlands in Nova Scotia and has announced\nits intent to sell these timberlands within the next 12 months.\n\n\nAbout Neenah Paper, Inc.\n\n\nNeenah Paper is a leading global manufacturer of premium, performance-\nbased papers and specialty products used in a variety of applications\nincluding filtration, printing and writing, and as backing and component\nmaterials for many specialized industrial and consumer applications. Products\nare marketed under well-known brands such as CLASSIC(R), ENVIRONMENT(R),\nSTARWHITE(R), Gessner(R), JET-PRO(R) SofStretch(TM) and varitess(R). Based in\nAlpharetta, Georgia, the company has paper manufacturing operations in the\nUnited States and Germany and approximately 500,000 acres of timberlands in\nNova Scotia, Canada. Additional information about Neenah Paper can be found at\nthe company's web site, www.neenah.com .\n\n\nAbout Northern Pulp Nova Scotia Corporation\n\n\nNorthern Pulp Nova Scotia Corporation is a new operating company of Atlas\nHoldings LLC and Blue Wolf Capital Management LLC to own and operate the\nPictou pulp mill. Northern Pulp w...

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