Brookfield acquires Fraser mills
By Kathy McCarty
Staff Writer
Brookfield Asset Management, with holdings in the U.S., Canada, as well as worldwide, is considering the future of Fraser Paper Inc.’s Masardis and Ashland mills, following their $12 million acquisition last month of both facilities.
Fraser Papers Inc., owner of the mills, had sought protection under bankruptcy proceedings, hoping to find a buyer for the two Aroostook County sites to help stabilize the company that was hit hard by the housing slump and subsequent recession. Brookfield was approved by the majority of creditors. Feb. 8. Bankruptcy hearings at the Ontario Superior Court of Justice and the U.S. Bankruptcy Court for the District of Delaware followed, with the transaction being implemented on Feb. 15.
Since the agreement was reached, Brookfield officials have been considering how best to manage their business’s two newest assets.
“Brookfield Asset Management is based in Toronto and is a leading global asset manager, with more than $100 billion in assets and 15,000 employees,” said Andrew Willis, senior vice president, communications and media.
Founded more than 100 years ago, Willis said the company focuses on “owning and operating what we term real assets — property, renewable power and infrastructure.”
In addition to managing properties such as shopping malls, Brookfield has over 30 years of experience owning and operating timberlands and paper and forest products companies in North and South America.
“We also have a private equity arm, with holdings that include lumber companies and Fraser Papers. Our timber holdings are among the largest in North America. We have a total of 2.9 million acres of timberlands,” said Willis.
Currently, the company oversees nearly 3 million acres of high-quality timberlands under management, including locations in British Columbia, Brazil and Acadian Timberland, with 1.1 million acres of freehold timberland located in New Brunswick and Maine.
Brookfield has devoted decades to the timber industry, including investments in companies involved in producing goods for the housing market.
“Other lumber holdings of ours include a stake in Norbord, one of North America’s largest manufacturers of OSB (oriented strand board) used in home building,” he said.
Willis said Brookfield took control of the mills in Masardis and Ashland, as part of the restructuring approved by U.S. and Canadian courts. Although there are no plans to add additional workers at this time, he confirmed there are no plans to reduce the number of employees either. He said that Brookfield is in a financial position to maintain the current staffing as the company watches the housing industry to see what the future holds.
“Brookfield formally took control of the mills in February, when the court approved the restructuring of Fraser Papers. This is a recent acquisition. We are still evaluating our options for the business. Brookfield has decades of experience as an owner and operator of forest products companies,” said Willis.
Last month’s final approval was the result of about a year and a half’s negotiations between Fraser Papers and creditors. Fraser had filed for creditor protection in June 2009. Fraser remains under protection of creditors until May 2.
