Bowater Completes Acquisition of Alliance Forest Products

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The following is an advisory by Industrialinfo.com (Industrial Information Resources Inc.; Houston, Texas). Bowater Incorporated (NYSE: BOW) (Greenville, SC) has completed the acquisition of Alliance Forest Products Incorporated (Montreal, PQ). The $742 million transaction announced earlier this year strengthens the company's position as a global leader in newsprint and expands its sawmill operations.

With the acquisition of Alliance, Bowater will have 12 pulp and paper mills in the U.S., Canada and Korea and 13 North American sawmills. At the end of last year, Alliance completed a $275 million modernization of the Donnacona mill that included a new paper machine. Last fall, Alliance started construction on a $113 million deinking plant project that is scheduled to come online in December at a mill located in Coosa Pines, Alabama.

Bowater's Canadian Forest Products Division will be headquartered in Montreal. The company is one of the world's largest consumers of recycled newspapers and magazines.