JACKSONVILLE, Fla.– Rayonier Advanced Materials Inc. has announced that it has entered into an agreement to sell its Matane, Quebec pulp mill and related assets to Sappi Limited, a global diversified wood fiber company, for a purchase price of approximately US$175 million. The mill produces approximately 270,000 metric tons of high-yield pulp and sells the product globally for use in manufacturing paperboard, packaging, printing, and writing paper. The Matane mill was acquired by the Company as part of its acquisition of Tembec Inc. in November of 2017. The Company will continue to manufacture and sell approximately 240,000 metric tons per year of high-yield pulp out of its Témiscaming facility.

The Company is continuing its previously-announced review of its commodity asset portfolio and will provide information on any additional actions when this review is concluded.

“As part of our portfolio evaluation, the sale of the Matane mill allows us to divest a non-core asset while providing our stockholders with fair value,” said Paul G. Boynton, Chairman, President and Chief Executive Officer of Rayonier Advanced Materials. “I want to personally thank the Matane management team and employees for their dedicated work for Rayonier Advanced Materials. We wish them well as they begin a new chapter with Sappi.”

The Matane transaction, which is expected to close in the fourth quarter, is subject to customary closing conditions, including receipt of regulatory approvals.