Norske Skog Canada to acquire Pacifica

Pulp & Paper, May 2001

Norske Skog Canada Ltd. announced it plans to acquire Pacifica Papers Inc. The combined company would be the third-- largest producer of newsprint in North America, with annual pulp and paper capacity of approximately 2.7 million mtons. In addition, Norske Skog Canada would become the leading West Coast producer of newsprint, telephone directory paper, lightweight coated paper (LWC), and hi-brite papers with annual capacity of 1.9 million mtons in those grades.

Combined sales from the two companies totals about US$1.6 billion. The Norske Skog Canada/Pacifica Papers combination company would be based in Vancouver, B.C. With the acquisition, Norske Skog Canada said it expects to capture annual synergies of approximately $60 to $100 million. Currently, Norske Skog Canada operates pulp and paper mills at Crofton and Campbell River, B.C. In March, Norske Skog Canada said it reached an agreement to sell the Mackenzie pulp operation located in B.C.'s northern interior to Pope & Talbot Inc., making Pope & Talbot the eighth-largest pulp producer in North America.