Rumford Paper Company Selling Energy Assets to ReEnergy Holdings
The purchase price for the assets is $61,000,000.
The transaction contemplates a long-term, symbiotic relationship between Rumford and ReEnergy. Following the closing, ReEnergy will operate the acquired assets to provide energy to the Rumford mill in the form of electricity and thermal energy. In turn, Rumford's pulp and papermaking process will supply ReEnergy with the sustainable biomass fuel supply needed to operate the cogeneration assets.
"The transaction represents an opportunity for the Rumford mill to realize value from its green energy assets and to focus on its core business of making high quality paper," said George Martin, president and chief executive officer of NewPage Corporation. "We are looking forward to working closely with ReEnergy in this new endeavor," stated Gerald LeClaire, mill manager, Rumford Operations.
ReEnergy Chief Executive Officer Larry Richardson said, "This exciting, new relationship with the Rumford mill is consistent with our business strategy of owning and managing solid fuel renewable energy facilities. We look forward to providing mission-critical, cost effective electricity and thermal energy to the Rumford mill."
- Companies:
- NewPage Corporation
- Places:
- North America
- Rumford, Maine