On Wednesday, a leading producer and supplier of diversified paper, Sappi North America, Inc., announced that it will sell its hydroelectric assets on the Presumpscot River in Maine to Dichotomy Power, LLC. In fact, the deal is still subject to satisfactory regulatory completion, among other approvals.
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Moreover, this move is part of Sappi’s strategy to focus on its core competencies. Besides, it is consistent with the company’s recent restructuring activities at the Westbrook site.
About the companies – Sappi North America and Dichotomy Power, LLC.
Sappi North America, Inc. is headquartered in Boston. Besides, it is a market leader in converting wood fiber into superior products. The Company operates through three diversified businesses – high-quality graphic papers, pulp and packaging, and specialty papers.
Accordingly, Sappi’s high-quality graphic papers include McCoy, Opus, Somerset, and Flo. Furthermore, these papers are the key platform for premium magazines, catalogs, books, direct mail, and high-end print advertising.
Besides, the company delivers sustainable packaging and specialty papers for luxury packaging and folding carton applications. According to Sappi, its customers rely on its high technical, operational, and market expertise.
Moreover, the Company is an indirect wholly-owned subsidiary of Sappi Limited (JSE), a global company headquartered in Johannesburg, South Africa. Besides, it has more than 12,000 employees and manufacturing operations on three continents in seven countries. It also has customers in over 150 countries.
On the other hand, Dichotomy Power LLC is a New York-based renewable-energy company that acquires, renovates, and operated hydroelectric assets in the US. Particularly, the Company focuses on the Northeast.
Moreover, Dichotomy creates value for stakeholders by working alongside regulators and local communities. Particularly to enhance the fundamental value embedded in each operated renewable energy facility; while preserving the environmental and social contributions these assets carry.
In this regard, Mike Haws, President, and CEO, Sappi North America, said; “We are happy to have found a strategic buyer in Dichotomy Power; which is a company with a wealth of expertise in this area. So, Sappi can continue to focus on its core competencies.”
Moreover, “today’s announcement allows us to redeploy resources to develop our growing businesses further,” continued Haws.
On the other hand, Ian Clark, CEO of Dichotomy Power LLC, commented in a media release; “Dichotomy Power is pleased to have reached an agreement with Sappi North America, Inc. to acquire their Presumpscot River hydroelectric facilities.”
Furthermore, “we are proud to carry on a history of successful traditions that started in 1878 with mechanical waterpower. Thus, Dichotomy looks forward to investing in the facilities to increase renewable energy production while honoring the commitments made to the agencies, communities, regulators, and stakeholders who helped craft the new licenses.”
Worth noting, Sappi and Dichotomy expect the deal to close by the end of the calendar year, subject to regulatory and other approvals.