Sappi successfully concludes its acquisition of the Matane Mill in Quebec Canada from Rayonier Advanced Materials (RYAM)

Sappi Limited, a leading global producer of dissolving wood pulp, specialities and packaging papers, graphic papers and biomaterials, today announced that all conditions precedent relating to the acquisition of the Matane high yield hardwood pulp mill in Quebec Canada from Rayonier Advanced Materials (RYAM) have been fulfilled and closing has been completed.

The main benefits of the acquisition include:
• Increases Sappi’s pulp integration for its fast-growing packaging businesses in both North America and Europe
• Supports Sappi’s 2020Vision to grow in higher margin growth segments
• Reduces Sappi’s cost of pulp
• Reduces the volatility of earnings through the pulp cycle
• Establishes certainty of supply for Sappi’s increasing need for high yield pulp to support its recent investments
• Will enable supply to be increased over time to Sappi’s mills in North America and Europe as demand increases and capacity expands in certain growth businesses.
• Leverages Sappi’s global pulp expertise to profitably sell market pulp to strategic customers and segments

Commenting on the transaction Steve Binnie, Chief Executive Officer of Sappi Limited, said:
 “I am very pleased that we have been able to finalise this acquisition so quickly. This acquisition will provide Sappi with both cost reductions and decreased volatility at a very competitive price per ton of pulp.  The transaction strengthens Sappi’s pulp integration, improves our profitability and is another significant milestone towards realizing our Vision2020 goal.”

ENDS
Further information can be found at www.sappi.com
 

Issued by:

Brunswick
on behalf of Sappi Limited
Tel + 27 (0) 11 502 7300

For further information:

André F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel +27 (0)11 407 8044
Mobile +27 (0)83 235 2973
Andre.Oberholzer@sappi.com

Graeme Wild
Group Head Investor Relations and Sustainability
Sappi Limited
Tel +27 (0)11 407 8391
Mobile +27 (0)83 320 8624
Graeme.Wild@sappi.com

Olga Karagiannis
Corporate Communication Manager
Sappi North America
Tel +1 617 423 5409
Mobile +1 617 306 0775
Olga.Karagiannis@sappi.com