Yesterday, January 8, ended the extended period Strategic Value Partners (SVP) has given Nordic Paper shareholders to accept its acquisition offer.
“We are purpose-built to invest in debt, private equity, event-driven, and financing opportunities”, says SVP. So, why is it acquiring a well-managed specialty and extensible sack paper producer such as Nordic Paper (Net Debt/EBITDA below 1.5 in the last few years)?
Fuel might be the answer.
SVP owns a company called PureField Ingredients, the largest domestic supplier of wheat protein in the United States, and a producer of renewable biofuels through reprocessed plant waste (ethanol). Nordic Paper has a Pine Kraft Pulp mill, so it can extract tall oil to produce Sustainable Aviation Fuel (SAF).
As a financial institution, SVP knows the potential gain. So should you, softwood producer.
