Miami-based Atlas Paper Holdings, a producer of toilet and tissue paper, was acquired for $156 million by Resolute Forest Products.
The Montreal-based company (NYSE: RFP) bought Atlas Paper from Peak Rock Capital, of Austin, Texas. It was owned by Peak Rock Capital since 2013.
“This is a step-change acquisition that provides us with an immediate position in the multi-billion-dollar North American consumer tissue market,” said Richard Garneau, president and CEO of Resolute Forest Products.
It’s certainly a product that most people can’t live without.
Atlas Paper manufactures toilet paper, facial tissues, napkins and paper towels. The company recovers over 50,000 tons of office and printer waste a year to convert into paper products. Its brands include Green Heritage, Bunny Soft, Harmony, Windsor Place and Eversoft.
The company has a headquarters/distribution center in Miami and a paper mill in Hialeah. It also has facilities in Tampa and Sanford.
Resolute Forest Products said the expertise of the people at Atlas Paper will help the company open a recycled tissue manufacturing plant in Calhoun, Tennessee.
“We are excited about becoming part of a larger, diversified company that views the tissue market as a cornerstone of its future,” stated Jim Brown, president and CEO of Atlas Paper Holdings. “This is a win-win: For Atlas Paper, we will benefit from pulp supply efficiencies and we will offer a wider range of products to our customers once the Calhoun tissue project is up and running.”
Resolute Forest Products said Atlas Paper is expected to generate annual earnings of $23 million, before interest expenses income taxes, depreciation and amortization. The buyer used BMO Capital Markets as its financial advisor and Akerman LLP as its legal advisor for the deal.