Madison Paper Industries has agreed to sell its hydro power facilities in North America to Eagle Creek Renewable Energy, a hydroelectric power producer from New Jersey.

The transaction is still subject to third party approvals. The parties have agreed not to disclose the purchase price.

"Eagle Creek is a well-known and experienced operator of hydroelectric power facilities in North America. The company focuses on CO2-friendly power production and has a long term focused business strategy in this sector. As an integral part of an energy company the hydro power facilities can be operated and developed in an optimal way," says Ruud van den Berg, Senior Vice President, Magazines, Merchants & Office, UPM Paper ENA.

"Eagle Creek is very pleased to broaden our footprint in central Maine. The Madison Paper Industries  hydroelectric portfolio represents an excellent opportunity to build out our operations in the region through the acquisition of a well-maintained, high quality set of hydro facilities," says Bud Cherry, CEO of Eagle Creek Renewable Energy.