Sappi to Acquire Potlatch Coated Paper Business

Proceeds from the sale will reportedly be used to pay down debt, strengthen Potlatch's balance sheet and provide capital for high-return investments in its other business lines.

The sale also reflects recent changes in the dynamics of the global market for coated printing papers, contends Siegel. "The continuing strength in the dollar in relation to other currencies in recent years and the ongoing industry consolidation have created a challenging competitive environment in the coated printing papers business, particularly for smaller, domestic producers," Siegel says.