Madison Paper Industries signed an agreement to sell its hydropower facilities to Eagle Creek Renewable Energy LLC, a Morristown, N.J.-based company that owns and operates 61 hydroelectric facilities nationwide.
The value of the transaction, which is still subject to third party approvals, was not disclosed, according to a report in EUWID Pulp and Paper, a worldwide trade publication based in Germany.
Madison Paper's partners, UPM and Northern SC Paper, a subsidiary of the New York Times Co., had already announced in late December the sale of assets related to the closed paper mill. EUWID reported that the sale of assets is part of an ongoing dissolution of the partnership.
The Madison paper mill, which had a capacity of 200,000 tons per year of super-calendared paper, ceased operations in May 2016, putting 215 people out of work.
The acquisition of the main paper mill and all mill equipment by New Mill Capital Holdings of New York, Perry Videx of New Jersey and Infinity Asset Solutions, which closed on Dec. 29, involved a joint venture of companies that specialize in re-purposing shuttered mills.
The purchase price paid was not disclosed at the time of the sale.
In a Dec. 30 release announcing their acquisition, the new owners stated they plan "to sell certain mill assets that are no longer usable on the property, as well as demolish some structures that are obsolete."
"Once that process is complete, the property will be remarketed for alternative industrial uses," the new owners stated. "Given the site's abundant supply of both power and natural gas, as well as a clear height of over 50 feet, the property is a uniquely attractive asset for a variety of heavy industries."
The Waterville Sentinel reported that Gregory Schain, principal of New Mill Capital Holdings, sees the pending sale of the hydropower assets as a key step in the eventual redevelopment of the former paper mill.