Hackman Capital Partners Leads Consortium of Investors in Purchase of Arizona Paper Mill Assets from Catalyst Paper

Share Article

New investors Team with Community Stakeholders to Preserve Economic Opportunity in Snowflake and Central Navajo County

Hackman Capital Partners, LLC, a privately-held, asset-based investment firm based in Los Angeles, confirmed today the successful acquisition of Catalyst Paper's shuttered paper mill and certain other assets located in Snowflake, Arizona. Catalyst Paper, western North America's largest producer of mechanical printing paper, closed the Snowflake facility in September. Catalyst’s assets were sold at auction in New York City on December 17, 2012, as part of restructuring proceedings in a Chapter 15 bankruptcy matter filed in Delaware. The assets sold at auction to the Hackman-led consortium consisted primarily of the paper mill improvements and personal property and 19,000 acres of real property. In a separate transaction through the auction, the Snowflake Community Foundation acquired the Apache Railroad Company and its 45 miles of track, which serve an important economic development purpose for the entire Snowflake community.

The consortium of investors, led by Hackman Capital, includes Hackman Capital Equipment Fund, PPL Group of Northbrook, IL, Capital Recovery Group of Enfield, CT, Rabin Worldwide of San Francisco, CA and community stakeholder Aztec Land and Cattle Company Limited of Phoenix, AZ. The transaction received state and local support based upon the investors’ willingness to structure the acquisition so that the Apache Railroad could be purchased from the estate by the Snowflake Community Foundation.

“We understood the importance of the Apache Railway to the community," said Michael Hackman, founder and CEO of Hackman Capital, “Apache Railway’s ability to provide low-cost transport of transcontinental freight is an important amenity that will hopefully advance economic growth for the area.”

Hackman noted that his firm has significant experience and sophistication dealing in complex transactions of this nature. Because Catalyst removed certain parts of the plant to prevent the facility from being operated as a paper mill going forward, the consortiums will liquidate the structures and equipment over the next 12 months.

The acquisition also included 19,000 acres of land comprised of 3,000 acres of industrial land and 16,000 acres of grazing and farm land. In addition, the land includes an operating well field consisting of 8 wells and 11 miles of pipeline with the capacity to pump 18,000 acre feet of water per day. The investor group is studying plans on how best to utilize the water distribution capacity.

“The liquidation is a daunting undertaking based upon the huge size of the facility; however, there are significant equipment and other assets that will draw real interest from buyers,” said William Firestone of Capital Recovery Group.

Capital Recovery Group, Rabin Worldwide, and PPL are seasoned experts in capital asset recovery and operate on a world-wide basis. Hackman attributes the sophisticated thinking and strong partnership between the buying group and state and local leaders for the success of the acquisition.

"There were approximately 22 bidders for the assets at the auction. Hackman Capital and the investor group were the only group that reached out to the community stakeholders in advance of the bankruptcy sale,” said Steve Brophy of the Aztec Land and Cattle Company.

Hackman noted that “none of this would be possible without our partners and the efforts of Governor Brewer’s office, Mayor Willis of Snowflake, the Snowflake Town Council, Henry Darwin and his colleagues at Arizona Department of Environmental Quality, Vanessa Hickman and the State Land Department, and Sandra Watson and Keith Watkins of the Arizona Commerce Authority.”


More about Hackman Capital
The firm currently owns, through its affiliated entities, over 100 facilities throughout the United States, totaling approximately 18 million square feet and more than 20,000 acres of developable land. Hackman Capital also has conducted hundreds of equipment acquisitions, dispositions, and liquidations on four continents. With more than 26 years of experience in acquisition, redevelopment, and asset management, Hackman Capital is known across marketplaces for its ability to successfully navigate complex transactions and financial restructurings involving real estate and equipment. The company is based in Los Angeles. For more information, visit http://www.hackmancapital.com.

More about Capital Recovery Group
Capital Recovery Group, LLC (“CRG”), headquartered in Enfield CT, is a global asset and disposition expert specializing in complex manufacturing facilities. Our signature business is assuming financial positions in the facility assets for either their reposition in a more competitive structure by utilizing equity or debt financing, or managing their disposition process. CRG enjoys an exemplary reputation with Fortune 500 Companies, private equity firms, and investment bankers. For additional information please visit http://www.crgauction.com.

More about PPL Group
PPL Group LLC is a private equity firm headquartered in Northbrook, Illinois which uses its capital to help businesses monetize and fund commercial assets. PPL has worked with hundreds of small-to-middle market businesses during turnaround, restructuring, and bankruptcy situations. The Company also helps businesses of all sizes and across a broad range of industries recover maximize values for surplus and idle assets. Through its wholly owned subsidiary, Revere Finance LLC, the Company lends money on a senior secured basis. With its network of cross-disciplinary professionals, PPL obtains the highest values for its clients’ assets. For more information, go to http://www.pplgroupllc.com.

More about Rabin Worldwide
About Rabin Worldwide - Based in San Francisco, Rabin Worldwide is an international auctioneer and valuation specialist of industrial plants and equipment. With over 60 years of experience in every sector of the industrial community, Rabin's signature business is assuming financial positions in the liquidation and/or valuation of complete factories and real estate. Rabin's proprietary database of buyers and patented software for selling assets maximizes value for both sellers and buyers. For more information, visit us at http://www.rabin.com.

More about Aztec Land and Cattle Company
Aztec Land and Cattle Company, Limited owns 230,000 acres of land in northeastern Arizona, where it has operated for 128 years. For more information, visit http://www.azteclandco.com.

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Susan Skros
Visit website