Paper Excellence, Domtar acquire Resolute Forest Products
The Paper Excellence Group, through Domtar, its wholly owned subsidiary, has announced the acquisition of Resolute Forest Products in a $2.7 billion deal, pending shareholder approval.
Under the agreement, Resolute will become a wholly owned subsidiary of Domtar, which will acquire all outstanding shares of common stock. Both companies will continue to operate independently under their own names.
Domtar, headquartered in Fort Mill, South Carolina, was acquired by British Columbia-based Paper Excellence in December 2021 in a deal valued at about $3 billion, with officials then saying the move was to broaden the company’s reach and expand its product range to include air-laid nonwovens and containerboard as well as increased pulp and paper production.
Similarly, Paper Excellence says the Resolute acquisition further expands its reach by building out its forest products portfolio in North America. “This acquisition strengthens the Paper Excellence Group’s core pulp and paper business and diversifies their product offering by adding tissue and wood product segments,” Domtar President and CEO John D. Williams says.
Paper Excellence Vice Chair and Chief Strategy Officer Patrick Loulou says, “Resolute is an ideal fit for our long-term growth strategy. It complements our existing pulp, paper and packaging businesses and adds capabilities in lumber and tissue.”
The deal also outlines a commitment to build a premier North American diversified forest products company and create long-term growth by supporting Resolute management’s existing growth strategy, which focuses on strategic investments in its lumber and pulp businesses while maximizing the value of its paper and tissue businesses. The companies also will conduct a detailed feasibility study for the conversion of Resolute’s Gatineau, Quebec, newsprint mill to packaging paper production.
“With this transaction, Resolute will accelerate its growth as it gains access to more tools, capital and opportunities to pursue our ambitions with the combined resources of the Paper Excellence Group,” Resolute President and CEO Remi G. Lalonde says.
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