(All financial information is in U.S.
Dollars)
RICHMOND, BC, March 1,
2023 /CNW/ - The Paper Excellence Group (the
"Group"), through its wholly-owned subsidiary Domtar Corporation
("Domtar"), today announced the successful closing of its
previously announced acquisition of Resolute Forest Products Inc.
("Resolute") (NYSE: RFP) (TSX: RFP). Today's 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. "Resolute has shown that it shares our
values and high standards related to the environment, our
communities, and our people."
"Together we are creating a stronger player in the global
marketplace. We look forward to collaborating with our new
colleagues, generating long-term value and driving sustainable
economic activity in the communities where we operate," said
Remi G. Lalonde, Resolute's
President and Chief Executive Officer. "The combined company will
adopt best practices, sharing a common goal of sustainability
leadership, and meaningful community engagement and partnerships,
including with Indigenous communities."
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 ("CVR") 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.
Advisors
Barclays served as exclusive financial
advisor to Paper Excellence, and Latham & Watkins LLP, McMillan
LLP, McCarthy Tétrault LLP, and Mehigan LLP served as legal
advisors.
CIBC Capital Markets served as exclusive financial advisor to
Resolute, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and
Stikeman Elliott LLP served as its legal advisors.
Financing
Barclays, CoBank, and Bank of Montreal provided financing to Domtar in
connection with the transaction.
About Paper Excellence Group
The Paper Excellence
Group is a privately held diversified manufacturer of pulp and
specialty, printing and writing, and packaging papers, producing
over 7 million tons annually with a workforce of over 10,000 in its
nearly 40 locations across the Americas and Europe. Through its individual business units,
the Group leverages its operational excellence and sustainable
high-quality, cost-effective products to deliver high quality pulp
and paper to its customers around the world. For more information
on Paper Excellence, please visit www.paperexcellence.com. To learn
more about Resolute Forest Products,
visit www.resolutefp.com.
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SOURCE Paper Excellence Group
