An integrated sawmill and pulp and paper complex, located on both sides of the Maine/New Brunswick border, Twin Rivers has an attractive portfolio of core specialty products developed over 80 years. Having emerged from bankruptcy in 2010, it had been unable to achieve financial and operational stability.
Relations with employees and governments in both the U.S. and Canada were frayed, distracting the company from developing its assets. The distractions were daunting with nearly $100 million in legacy liabilities—many to government agencies—left unresolved during the bankruptcy, and a dangerously underfunded pension plan in the process of reducing benefits to retirees. As a result, the company’s strong core product suite was often overlooked.
In partnership with a proven, veteran operating team, we proposed a comprehensive, multi-pronged solution: Invest capital to improve quality, write off legacy liabilities, restore the pension plan to good health, negotiate new streamlined labor agreements, and work with government regulators to lower wood costs.
Under new management’s strong leadership, Twin Rivers took advantage of new labor agreements to implement modern, quality-driven, flexible production systems. Access to low cost wood fiber improved outcomes at all three of the company’s facilities. New capital allowed for smoother production flows. All of these factors combined to create improved company-wide levels of productivity and quality.
With the company’s balance sheet stabilized and its pensions restored, Twin Rivers’ management and employees have come together to significantly improve quality and regain market share across their product lines. Our orchestration of this complex solution, backed by a substantial capital commitment, has created a company that provides nearly 1,000 good paying, stable jobs in Maine and New Brunswick, while also introducing the company’s products to a global market.