Sale of these timberlands is consistent with Neenah Paper's previously announced strategy to unlock value from pulp operations and focus on growth in the fine paper and technical products businesses. Terms of the sale include a supply agreement that ensures Neenah Paper's Pictou pulp mill continues to receive fiber for its operations and that the timberlands will continue to be managed in a responsible, sustainable manner. Neenah Paper will continue to own approximately 500,000 acres of timberlands in Nova Scotia.
"We are extremely pleased with the terms of the transaction and the completion of this important step in our strategy to transform Neenah Paper and deliver value to shareholders," said Sean Erwin, chairman and chief executive officer. "The proceeds can provide a source of funding for investments which would provide growth and offer attractive financial returns. It was also important that the agreement provide for a secure supply of fiber to our Pictou operations and I feel confident that the mill will continue to be successful under this new arrangement."