Kruger Enters Agreement to Acquire Kamloops Pulp Mill from Domtar
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Kruger announced that its affiliate Kruger Specialty Papers Holding L.P. entered into a definitive share purchase agreement pursuant to which one of its wholly-owned subsidiaries will purchase all the issued and outstanding shares in the capital of DKP Pulp ULC, a legal entity wholly-owned by Domtar Inc. that will, at the time of closing, own and operate the Kamloops Mill located at 2005 Mission Flats Road, Kamloops, British Columbia, Canada.
The Kamloops mill operates one fiber line with the capacity to produce 408,000 air-dried metric tonnes per year of Northern Bleached Softwood Kraft (NBSK) pulp and unbleached softwood kraft pulp.
"We're very excited about the opportunities that will arise from this acquisition, not only for Kruger but also for the Kamloops Mill, B.C. wood fibre suppliers and the local community," said François D'Amours, Executive Vice President and Chief Operating Officer for Kruger Inc., Kruger Specialty Papers' parent company.
The Paper Excellence Group, in the context of its acquisition of Domtar Corporation in November 2021, had agreed with the Canadian Commissioner of Competition to sell Domtar's pulp mill in Kamloops.
Kruger said the acquisition will enable it to secure the supply of high-quality pulp for some of its Québec paper mills. As a reminder, Kruger, which has 2,700 employees in Québec, is investing about $1 billion in Sherbrooke, Québec, for the construction of two state-of-the-art tissue plants.
Closing of the transaction contemplated by the Purchase Agreement is expected to occur in the second quarter of 2022 and is subject to customary conditions, including the approval of the Commissioner of Competition.
