MEMPHIS, Tenn.--(BUSINESS WIRE)--Jan. 18, 2012--
Buckeye Technologies Inc. (NYSE:BKI) today announced that it has signed
a definitive agreement to sell the assets and ongoing operations of its
Merfin Systems converting business to National Tissue Company, LLC.
Merfin Systems, located in King, North Carolina, is a converter of
towels, tissue and napkins which it sells along with proprietary paper
product dispensers into the away from home market. It sells these
products through selected distributors concentrated in the eastern U.S.
and Canada. National Tissue is a privately owned converter located in
Cudahy, Wisconsin. National Tissue markets and sells its broad product
line primarily through small and mid-sized distributors located in the
National Tissue’s President, Mike Graverson, said, “Merfin is an
excellent fit and will complement National Tissue’s core business.
Merfin brings their proprietary dispensing systems and other product
extensions to our basic offering. Adding a second and expandable
operating location is a big step in our strategic roadmap.”
Buckeye’s Chairman and Chief Executive Officer John Crowe said, “We are
pleased that our employees in King are now partnered with a strategic
industry player. While it has not been a core business for Buckeye, we
have been pleased with our 15 year ownership of Merfin Systems. We
believe this opens up new horizons for this fine company, and enables
Buckeye to deploy the proceeds into its strategic operations.”
“We expect to incur non-cash goodwill and fixed asset impairment charges
of about $4 million in the October-December 2011 quarter. The sale along
with associated liquidation of working capital is expected to generate
approximately $6 million in cash.”
Buckeye, a leading manufacturer and marketer of specialty fibers and
nonwoven materials, is headquartered in Memphis, Tennessee, USA. The
Company currently operates facilities in the United States, Germany,
Canada, and Brazil. Its products are sold worldwide to makers of
consumer and industrial goods.
Certain matters discussed in this press release may constitute
forward-looking statements within the meaning of the federal securities
laws that involve risks and uncertainties, including but not limited to
economic, competitive, governmental, and technological factors affecting
the Company’s operations, financing, markets, products, services and
prices, and other factors. For further information on factors
which could impact the Company and the statements contained herein,
please refer to public filings with the Securities and Exchange
Source: Buckeye Technologies Inc.
Buckeye Technologies Inc.
Steve Dean, 901-320-8352
President and Chief Financial Officer