New York PE firm suffers setback after newsprint tariffs shot down

From PitchBook, August 29:

Score it: Newspapers 1, One Rock Capital Partners 0.

The US International Trade Commission officially nixed the Trump administration's tariffs on Canadian newsprint on Wednesday, overturning a decision made earlier this year by the US Commerce Department that caused paper costs to increase by as much as 35% and publishers to institute further cutbacks in an already struggling industry.

Wilbur Ross, the embattled US Secretary of Commerce and former private equity titan, originally instituted the tariffs in March after North Pacific Paper Company (aka NORPAC), a mill in Longview, WA, that's owned by One Rock Capital, argued that Canadian newsprint was being subsidized and "dumped" into the US at unfairly low prices. Of the five US-based mills still in operation, NORPAC was the only company to complain.

Ross' decision drew a swift rebuke from the publishing industry and beyond. Last month, newspaper publishers were joined by a bipartisan group of lawmakers in appealing the decision to the US Commerce Department. Ross ultimately relented a bit, lowering the duty by about 5 percentage points and capping the tariffs below 20%.

In reaching its unanimous 5-0 decision, the ITC determined that there was no material harm being caused the Canadian mill's pricing. In other words, NORPAC's argument was paper thin....MORE