Rayonier Advanced Materials, a U.S.-chemicals company, has sold its resins business to Canada-based peer LRBG for a purchase price of approximately $16.5 million.
Rayonier Advanced Materials said that the sale of resins business allows it to divest a non-core petroleum-based chemical asset.
Further, the deal provides its stockholders with a fair value and incremental cash to be redeployed through capital allocation process focused on risk-adjusted returns.
The business, with manufacturing locations in Longueuil, Quebec and Toledo, Ohio, was originally acquired as part of Rayonier’s acquisition of Canada-based paper company Tembec in November of 2017.