Rayonier Advanced Materials Inc. more than doubled in size and briefly entered the Fortune 1000 in 2019 after acquiring Montreal-based Tembec Inc. in late 2017.
However, the Jacksonville-based company is getting smaller as it sheds some of the Canadian operations acquired from Tembec to focus on its core cellulose specialties products.
Rayonier AM announced a deal April 12 to sell six lumber mills and one newsprint mill in Canada to Vancouver-based GreenFirst Forest Products Inc. for $214 million.
That deal follows a 2019 sale of a pulp mill in Quebec to South Africa-based Sappi Ltd. for $175 million.
After acquiring Tembec, Rayonier AM’s revenue jumped from $961 million in 2017 to $2.13 billion in 2018, vaulting the company into 951st place on Fortune magazine’s annual list of the 1,000 largest U.S. companies.
Rayonier Advanced Materials Inc. announced an agreement April 12 to sell its lumber and newsprint facilities in Ontario and Quebec to a Canadian lumber company for $214 million.
Jacksonville-based Rayonier AM acquired the business as part of its 2017 purchase of Montreal-based Tembec Inc., but it has been seeking to sell off assets that are not part of its core business.
Vancouver-based GreenFirst Forest Products Inc. is buying six lumber mills and one newsprint mill from Rayonier AM.
“The sale of the lumber and newsprint businesses allows us to divest non-core assets at an attractive valuation and positions Rayonier Advanced Materials to further invest in the earnings growth of our core High Purity Cellulose assets and its biofuture while also reducing overall debt,” CEO Paul Boynton said in a news release.