BOSTON, Feb. 1, 2018 (PRNewswire) -MFGR, LLC announced today that it has sold the former Expera/Old Town pulp mill based in Old Town, Maine to OTM Holdings, LLC. OTM Holdings plans to redevelop the site into a wood fiber-based complex that would include multiple tenants.
MFGR acquired the pulp mill in 2016 after the former owner, Expera, wound down operations. Since 2016, MFGR has worked diligently to identify a strategic buyer that would put the assets purchased by MFGR, including valuable existing permits, back into operation. MFGR recognized that if the right buyer could be located for the former Expera mill, there would be a broad positive impact for the region and help to support Maine's forest industry. During MFGR's ownership, existing research being performed within the mill complex by the University of Maine's Forest Bioproducts Research Institute continued, which included occupying 40,000 square feet of the mill complex rent-free. MFGR is a joint venture comprised of Gordon Brothers, Capital Recovery Group (CRG), Rabin Worldwide and PPL Group.
"We are thrilled to have had the opportunity to acquire a facility that can be redeveloped into a fully integrated fiber-based campus that will capitalize on the mill's energy platform and the region's plentiful fiber supply," stated a representative for OTM Holdings. "We are grateful to MFGR for their creativity and flexibility in providing a solution that allowed this purchase to happen," he added.
"We are pleased to sell this pulp mill to the right strategic end user. It required a lot of patience and creativity, but we're confident the new owners will help make this a vibrant manufacturing mill once again," stated Bob Maroney, President, Commercial & Industrial of Gordon Brothers.
"It's great to see the potential of this project finally realized. The mill brings a lot of opportunity to the new buyers and the region at large," stated Bill Firestone, President of CRG.
The mill consists of 400,000 square feet of warehouse buildings, a waste water treatment plant, a 16 MW biomass boiler and approximately 300 acres of land with roughly 4,000 feet of frontage on the Penobscot River.
About Gordon Brothers
Since 1903, Gordon Brothers (www.gordonbrothers.com) has helped lenders, operating executives, advisors, and investors move forward through change. The firm brings a powerful combination of expertise and capital to clients, developing customized solutions on an integrated or standalone basis across four service areas: valuations, dispositions, operations, and investments. Whether to fuel growth or facilitate strategic consolidation, Gordon Brothers partners with companies in the retail, commercial, and industrial sectors to put assets to their highest and best use. Gordon Brothers conducts more than $70 billion worth of dispositions and appraisals annually. Gordon Brothers is headquartered in Boston, with 25 offices across five continents.
CRG is an international firm which creates liquidity through innovative solutions. The firm specializes in complex industrial facilities with idle or marginally productive assets and may work with strategic partners to either revitalize the under productive assets and/or liquidate the surplus. CRG's business model is to execute the above as principals and to work hard to achieve its goals with risk capital deployed. The firm has a multi-million dollar credit facility, which provides the capital to accomplish the forgoing. (www.capitalrecoverygroup.com)
About Rabin Worldwide
Rabin Worldwide provides comprehensive financial solutions for businesses in transition, from Fortune 500 companies and private industry, to financial institutions, receivers, trustees and courts. Rabin's ability to evaluate, market, and sell surplus business assets has inspired the confidence of clients and customers for over 50 years. Rabin Worldwide is a multi-generation business providing financial solutions for a wide range of clients and customers. The company began by selling WWII surplus in the San Francisco Bay Area in the 1950's, and is now a global company capable of managing industrial sales of any size or type — known for its financial strength and ability to assume equity positions in all manufacturing and processing industries. (www.rabin.com)
About PPL Group
PPL Group LLC (PPL) is a private equity firm which uses its capital to help businesses fund growth and monetize commercial assets. The Company's experience and expertise allow it to provide the best possible financial recovery for its clients around the world. Recent clients include Ryerson Steel, Caterpillar, GE Aircraft, Newell Rubbermaid and Delphi – along with myriad small and middle-sized companies across the United States. PPL has worked with hundreds of small to middle-market businesses during turnaround, restructuring, and bankruptcy situations. The Company also serves large corporations in the recovery of maximum values for their idle and surplus assets. (www.pplgroupllc.com)