Dresden Mill - Germany
On March 13, 2013 Fortress Paper announced that it had entered into a share purchase agreement with P.H. Glatfelter Co. pursuant to which Fortress Paper had agreed to sell all the shares of its wholly owned subsidiary, Dresden Papier GmbH to Glatfelter for an aggregate purchase price of €160,000,000 (approximately CDN$212million), subject to working capital adjustment. Fortress announced that it had successfully completed the sale of the Dresden Mill on April 30th, 2013.
The Dresden Mill is located in Germany in the town of Heidenau, approximately 12 kilometres south of the city of Dresden and produces non-woven wallpaper base for manufacturers primarily in Eastern and Western Europe. The Mill began production of wallpaper base in 1976 and non-woven wallpaper base in 2002, has a production capacity of approximately 60,000 tonnes and employs approximately 138 workers. Fortress Paper purchased the mill in 2006 for approximately CDN$8million. The Dresden Mill produced approximately 50% of the non-woven wallpaper base worldwide in 2012, organically grown from approximately 27% market share in 2006.
With the sale of the Dresden Mill, Fortress Paper no longer operates in the specialty papers (wallpaper base) industry.
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