GLV sells pulp and paper division to focus on water business

Canada-based GLV has signed a deal to sell its pulp and paper division for $65m to focus on its water treatment business.

The company will be sold to a company owned by GLV executive chairman Laurent Verreault and GLV president and chief executive Richard Verreault on a debt-free basis.

Under the agreement, GLV will receive $60m in cash and transfer a debt of $2m to the Verreault family, while the remaining amount will be paid over the following 42 months.

Following the completion of the deal, the company will rename itself to Ovivo to become a pure water treatment product company.

The company expects that the transaction is expected to open up long-term opportunities for the company in the growing water market, thereby strengthening its balance sheet and accelerating its organic and acquisition growth.

GLV committee of independent directors chairman Marc Courtois said: "The board of directors of GLV has been considering the sale of the pulp and paper division for quite some time.

"Over the past years, GLV has solicited and received expressions of interest for the pulp and paper division, none of which were superior to today’s proposed transaction.

"The sale of this division represents an opportunity for GLV to become a pure water treatment company and utilise the net proceeds to redeploy in Ovivo’s higher-growth opportunities."

The Verreault family will continue to be shareholders of the company and retain their voting power.

GLV executive vice-present and Ovivo division president Marc Barbeau will be the first president and CEO for Ovivo, following closure of the deal.