Paper Excellence completes acquisition of Resolute Forest Products
The Paper Excellence Group, through its wholly-owned subsidiary Domtar Corporation, announced the successful closing of its previously announced acquisition of Resolute Forest Products. The acquisition creates a stronger and more resilient diversified forest products company, manufacturing a range of pulp products and specialty, printing, writing, and packaging papers, as well as lumber and tissue.
The acquisition of Domtar in 2021 and Resolute today significantly increases the Group’s scale, overall product offering and geographic reach.
“We are thrilled to welcome Resolute into the Paper Excellence Group. Resolute’s business is complementary to our own. It introduces new products to our offering and allows us to welcome an impressive workforce, strengthening our existing team. We are well positioned with the addition of competitive lumber capacity at a time of significant shortage in housing stock throughout North America,” stated Patrick Loulou, Vice Chairman and Chief Strategy Officer of the Paper Excellence Group.
Under the terms of the agreement, Resolute stockholders are receiving $20.50 for each share of the Resolute common stock. They also receive one contingent value right per share (on a fully diluted basis) entitling the holder to a share of potential future softwood lumber duty deposit refunds on about $500 million of deposits paid by Resolute. Resolute common stock will cease to be listed on the New York Stock Exchange and the Toronto Stock Exchange.