WestPeak Research Association
Value, growth, long/short equity, long only

Mercer International - Finding Value In Pulp

Author: Braeden Price

Company Profile

Mercer International (NASDAQ:MERC) is a global pulp company specializing in the production of northern bleached softwood kraft (NBSK) pulp, which is used in a variety of paper and tissue products. Mercer also sells biochemical and bioenergy products, both by-products of the pulp production process. They operate in Canada and Germany through three mills: Rosenthal, Stendal and Celgar. Over 50% of revenues are attributable to European sales, while growing Chinese business represents 26% of sales.

A Growing Company

Recent capital investments in biochemical and bioenergy production provide a safeguard against NBSK volatility, while increasing opportunity in China proposes attractive growth potential for Mercer International. Combined with recently delevered operations, a new dividend and a

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