MERCER INTERNATIONAL INC. (NASDAQ:MERC) Files An 8-K Entry into a Material Definitive Agreement
Item1.01.
| Entry into a Material Definitive Agreement |
On February21, 2017, Mercer International Inc. (the Company) and
its wholly owned subsidiary, (the Purchaser), entered into an
asset purchase agreement and ancillary agreements with Klausner
Holz Thringen GmbH (the Seller) and certain affiliates
(collectively, the Agreement), to which, among other things, the
Purchaser will acquire from the Seller substantially all of the
assets comprising a sawmill and bio-mass power plant located near
Friesau, Germany (the Friesau Facility), for consideration of
approximately $55.1 million (52.0 million) plus defined working
capital at closing, currently estimated to be approximately $9.0
million. Additionally, in connection with the sale of the Friesau
Facility and to ensure an orderly transfer thereof, an affiliate
of the Seller has agreed to provide the Purchaser certain
transitional services and sales and marketing services for a
period of up to 12 and 24 months after closing, respectively, or
such shorter periods that the Purchaser requires.
Closing under the Agreement is expected to occur around the
beginning of the second quarter of 2017 and is subject to
customary closing conditions, including, among other things,
receipt of requisite regulatory approvals.
The description of the Agreement contained herein does not
purport to be complete and is qualified in its entirety by
reference to the Agreement that will be filed as an exhibit to
the Companys Report on Form 10-Q for the quarterly period ended
March31, 2017.
A copy of the Companys press release dated February21, 2017,
announcing the Agreement, is attached hereto as Exhibit 99.1. The
information in such press release shall not be deemed filed for
purposes of Section18 of the Securities Exchange Act of 1934, as
amended (the Exchange Act), or otherwise subject to the
liabilities of that Section, nor shall it be deemed incorporated
by reference into any registration statement or other document
filed under the Securities Act of 1933, as amended, or the
Exchange Act, except as shall be expressly set forth by specific
reference in such filing.
| Item9.01. | Financial Statements and Exhibits |
| (d) |
Exhibits. |
|
ExhibitNo. |
Description |
|
|
99.1 |
Press release dated February21, 2017. |
About MERCER INTERNATIONAL INC. (NASDAQ:MERC)
Mercer International Inc. is engaged in producing (northern bleached softwood kraft) NBSK pulp. The Company operates in the pulp industry and produces pulp for resale, known as market pulp, in Germany. It also produces and sells tall oil, which is used as both a chemical additive and as a green energy source. The Company operates over two mills in Eastern Germany and approximately one mill in Western Canada. The Company’s NBSK pulp mills include Rosenthal mill, which is located in the town of Blankenstein, Germany, approximately 300 kilometers south of Berlin; Stendal Mill, which is located near the town of Stendal, Germany, approximately 130 kilometers west of Berlin, and Celgar Mill, which is located near the city of Castlegar, British Columbia, Canada, over 600 kilometers east of Vancouver. The Company’s NBSK pulp mills has an annual production capacity of approximately 1.5 million air-dried metric tons (ADMTs) of NBSK pulp and generates over 305 megawatts (MW) of electricity. MERCER INTERNATIONAL INC. (NASDAQ:MERC) Recent Trading Information
MERCER INTERNATIONAL INC. (NASDAQ:MERC) closed its last trading session up +0.05 at 12.20 with 262,909 shares trading hands.