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Neenah turning over Nova Scotia mill operations

By Associated Press
May 15, 2008 | Comments (0)

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Neenah Paper Inc. said Thursday it will turn operations of a pulp mill in Nova Scotia, Canada, over to Northern Pulp Nova Scotia Corp.

The company presented the transaction as a sale, though it is actually paying Northern Pulp between $15 million and $20 million to take the Pictou mill and associated woodlands operations.

Northern Pulp, a company operated by Atlas Holdings LLC and Blue Wolf Capital Management LLC, will assume liabilities including an underfunded pension plan as well as all the assets at the mill.

The deal is a less costly alternative than shutting the plant down, said company spokesman Bill McCarthy.

Neenah will retain 500,000 acres of timberlands that it owns in Nova Scotia.

Shares of Neenah Paper closed at $20.61 Wednesday.

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