B. C. Forest Products (1957 – 1998) ran the Crofton mill, followed by Fletcher Challenge.
Norske Skog, a forest products firm from Norway, acquired Crofton and her sister mill at Elk Falls in November 2000. NorskeCanada arose in August 2001 when the Norske Skog mills combined with Powell River and Pt. Alberni (previously Pacifica Papers) and was spun off as a separate publicy traded company with Norske Skog retaining an controlling interest, NorskeCanada.
In 2005, NorskeCanada changed its name to Catalyst Paper in a bid for independent branding. The move signalled the coming end to the ties with Norske Skog and in late January of 2006, the Norwegian firm said it was selling its 29.4 per cent stake in Catalyst Paper Corp. of Vancouver for $192 million.
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Crofton Mill - The morning after the Clean Air Concert
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Catalyst also bought Western Canada's largest de-inking plant bringing the number of facilities to five mills employing 3,500 people.
In October, 2006 Catalyst succumbed to a takeover bid by New York firm, Third Avenue Management after fierce opposition by the Catalyst board. Third Avenue, an investment adviser to mutual funds and private and institutional clients, had been investing in Catalyst since 2005 and boosted its stake in Catalyst to roughly 38 per cent in a deal worth about $128.7 million.
President and chief executive Russel Horner and chief financial officer Ralph Leverton left in March, 2006 under 'change of control' conditions that allowed them to leave entitled to millions of dollars in compensation, making way for new Third Avenue appointees. Horner and Leverton received payments totalling $4.8 million and $1.6 million, respectively in separation packages.
They were replaced when Richard Garneau was named President and CEO and David Smales as CFO. The appointments were made in the midst of $21Million re-structuring plan involving 350 layoffs, a reduction of 10% of the workforce.
Third Avenue Management group (TAM), has now become a major shareholder in British Columbia’s forest industry with stakes in Canfor, Catalyst Paper, TimberWest, and Abitibi Consolidated.
Watch this space.
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The Crofton Mill
