The Partnership of Rabin Worldwide, Capital Recovery Group and PPL Group LLC to Conduct the Public Auction in Late July
WISCONSIN RAPIDS, Wis., July 11, 2024 -- A second major auction event is scheduled for the storied Verso paper mill, with an online auction happening July 23, 24 and 25 on at www.crgllc.com. As many in the paper industry know, in 2020, Verso idled production at its gigantic Wisconsin Rapids paper mill resulting in more than 900 employees having to find other work. Two years later, Verso merged with Billerud, a Sweden-based company that focuses on sustainable packaging, in which Billerud continued the converting operations at the facility, but not the pulp and paper making side of the mill. Shortly thereafter, city leaders began proactively considering how the approximately 1,400 acres could be redeveloped or reused, and created a survey of local residents to share what they thought Wisconsin Rapids needed.
What did residents say they wanted?
From the findings of the September 2022 Wisconsin Rapids Reuse Survey, the majority of the 650 participating residents wanted to see the property used to expand, retain and attract companies that would bring in new jobs. Both residents and officials also placed emphasis on an environmentally responsible-redevelopment program, lowering pollution and reusing as much of the existing facilities as possible. A key point noted by city leaders was maintaining open lines of communication with Billerud in providing assistance with a long-term plan for the mill site.
At the time, the city made a request to Billerud, or a new owner of the mill, to adhere to the city's demolition ordinance and prevent the mill site from being stripped of value with no plans to redevelop. Wisconsin Rapids does have a salvage ordinance in place that requires an implementation plan and review of scrap or salvage operations, very similar to that of the state.
New buyer of the mill
In March 2024, the mill was purchased by the investment group PCR Rapids 1, LLC ("PCR"), a consortium of three investment firms of Rabin Worldwide, Capital Recovery Group and PPL Group LLC who have a diverse history of repositioning idle industrial assets, by investing their own funds to identify and support new ownership and other avenues for repurpose. PCR has already implemented a global marketing program to identify parties in portions of, or all of the available mill site properties.
Currently, the closed Rapids mill is managed by a former paper mill plant manager who was in charge of Verso's closed paper mill in Luke Maryland. Though Verso had sold the Luke paper machines prior to the involvement of PCR, the firm's global marketing campaign found a German group searching for an east coast mill site with power and raw wood stock for a medium density fiberboard plant. Multiple visits to the Luke plant by German engineers as well as a trip to Germany by the chief executives of PCR appeared promising. Unfortunately, the Luke Maryland raw material stock was inadequate for the German's needs.
How do you Repurpose a Gigantic Paper Machine Building?
The massive mill site is divided into north and south sectors. The north is comprised of the wood yard, pulp mill and the power building, while the south portion has the massive paper machine building, along with Billerud's converting operation and a paperboard making plant of Sonoco. When the German group passed on the Luke Maryland property, Glen Gilbert, the former Luke plant manager suggested they take a look at the Rapids site.
The initial inspection by the German engineers found an abundance and perfect mix of hard and soft timber for their planned MDF plant. With the German group's requirements for the northern sector rail yard and debarking operation, Gilbert recommended the immediate clearance of the pulp and power house buildings, which resulted in the recent April auction sale of the redundant pulp and power house equipment.
Prior to the Wisconsin Rapids assignment, Gilbert experienced a roller coaster ride with the German group, the town of Luke, and representing state officials of Maryland and West Virginia. "When dealing with the interests of several groups, nothing is certain" notes Gilbert. "But having the ability to initiate an immediate plan which adds new jobs while creating needs for existing maintenance support services – is a win-win for everyone." Gilbert adds, "Trust me on this. I've been through it before."
Over $40 Million in Surplus Assets to be Auctioned
The second sale of the Verso facility will include the contents of the gigantic paper machine building, a $16 million spare parts and motor inventory, and 700 Vidmar modular parts cabinets. Over 1600 items will be sold at an online auction July 23, 24 & 25. To the pleasant surprise of the PCR team, the completed April sale is generating interest in the mill's 1400 acres of real estate, the most intriguing of which is a plan to convert the gigantic PM16 paper building into a data center.
For further information on the redevelopment of the Rapids mill, or questions on the upcoming late July auction, contact Glen Gilbert at (304)813-4831 or glen26743@gmail.com, or visit www.crgllc.com to bid at auction.
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