QUEBEC -- Fortress Paper Ltd. says it has entered into an asset purchase agreement with LSQ Energy, L.P. and LSQ Development, L.P., providing for the sale of the buildings, equipment and other ancillary property relating to the non-operating pulp mill and sawmill, as well as the energy generation, connection and transmission plant and related equipment, located in Lebel-sur-Quévillon, Québec (the "LSQ mill") for an aggregate purchase price of $15.36 million.

The transaction is expected to close on or before July 8, 2016.

Yvon Pelletier, President and CEO of Fortress Paper, commented: "The sale of the LSQ mill represents a divestiture of a non-core asset which will release the Company from a number of future obligations and allow it to focus on other value enhancing transactions to grow its business."

Fortress Paper operates internationally in two distinct business segments: dissolving pulp and security paper products.