SP Advises Nine Dragons Paper (SEHK:2689) on 1st U.S. Acquisition

Sonenshine Partners has advised ND Paper LLC (“ND Paper”), a wholly-owned subsidiary of Nine Dragons (Holdings) Limited (the “Company” or “Nine Dragons”) on its acquisition of the Rumford, Maine and Biron, Wisconsin pulp and paper mills for US$175.0 million. This acquisition represents an upstream integration of the Company’s current business, offers geographic diversification and serves as an important step in enhancing the Company’s capability to provide competitive products and better serve its global customer base. Marking Nine Dragon’s entry into the North American market, this acquisition also provides access to high quality virgin fiber.

“We are very excited about the new products, team members and new business opportunities we can create with this acquisition,” said Ken Liu, CEO of ND Paper. “We look forward to working with the teams and local communities in Maine, Wisconsin and Ohio to expand our industry leadership globally.”

Sonenshine Partners worked with Nine Dragons to identify a range of North American pulp and paper mill assets, eventually advising the Company on its strategic purchase of the Rumford and Biron mills. Simultaneously during the process, Sonenshine Partners advised the Company on establishing its North American headquarters, which will serve as the corporate office managing the company’s North American operations.

“We are very pleased to have advised Nine Dragons on developing their North American strategy and executing their first step by acquiring the Rumford and Biron pulp and paper mills from Catalyst Corporation” said John Chrysikopoulos, Senior Managing Director of Sonenshine Partners.

About ND Paper LLC

ND Paper LLC is a wholly-owned subsidiary of Nine Dragons Paper (Holdings) Limited, an environmentally-friendly manufacturer of various types of paper and paper-based products. Nine Dragons is the largest containerboard producer in Asia and is a leading paper product manufacturer globally. It is primarily engaged in the production and sale of a broad variety of packaging paperboard products, including linerboard, high performance corrugating medium, coated duplex board, as well as recycled printing and writing paper and specialty paper. Nine Dragons operates nine mills and 39 machines with total annual production capacity of over 14 million tonnes. During the last twelve months ended December 31, 2017, the Company generated revenues of RMB 45.7 billion (US$6.8 billion), operating income of RMB 9.8 billion (US$1.4 billion), and net income of RMB 6.8 billion (US$1.0 billion). Nine Dragons was established in 1995 and listed on the Main Board of the Hong Kong Stock Exchange on March 3, 2006. As of May 24, 2018, the Company’s market capitalization was approximately HK$58.2 billion (US$7.4 billion).

About Sonenshine Partners

Established in 2000, Sonenshine Partners is a private investment bank advising major companies worldwide on mergers, acquisitions, corporate finance and restructuring transactions across multiple industry sectors.  With offices in New York and London, Sonenshine Partners brings unique insights, unconflicted advice and extensive dealmaking experience to its global client base.