Volume 16, No. 1 January 2022
Strategic & Financial Arguments (TM)
for the pulp and paper industry worldwide
Participating as industry experts in pulp and paper financing and M & A deals around the world for nearly three decades, we continue to see the same mistakes made over and over. This newsletter is designed to help you avoid costly mistakes we have seen others make. We will be giving you one or two points each month to help improve your performance.
 
BillerudKorsnäs comes to town


I've said it before and I'll say it again...the pulp and paper industry is never dull and boring.

A couple of weeks ago, BillerudKorsnäs of Sweden announced their plans to purchase Verso and convert the Verso assets to packaging grades over time. This idea may give these remaining near-death assets new life. I am all in favor of that if it makes good, fiduciary sense. This industry is not a museum, if they can repurpose them successfully, that is all the better.

According to one well-known analyst, this may put some pressure on the likes of Graphics Packaging and Clearwater. You'll recall we mentioned Clearwater last month when we talked about "Soft Tissue." In fact, since this announcement came out, another analyst has suggested Clearwater would make a good acquisition target for BillerudKorsnäs, too.

Now, I will add my two cents to the mix. The Clearwater asset in Arkansas makes sense, but that strands the Clearwater tissue mill in Lewiston, Idaho. Who wants it? Resolute? Essity? Others?

And then there is Pactiv Evergreen. Can it be leveraged in this mix as well?

All questions for another day.


If you have a casual question or a major deal, call me on my personal cell phone - 404-822-3412 or email me at jthompson@taii.com or jim.thompson@ipulpmedia.com. We are here to help.

 
Sincerely,