Paper Excellence Completes Acquisition of Resolute Forest Products
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The Paper Excellence Group, through its wholly-owned subsidiary Domtar Corporation, today announced the successful closing of its previously announced acquisition of Resolute Forest Products Inc.
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 (NYSE: RFP) and the Toronto Stock Exchange (TSX: RFP).
In a press release, Paper Excellence said, "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," the company added.
Patrick Loulou, Vice Chairman and Chief Strategy Officer of the Paper Excellence Group, said "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."
Paper Excellence first announced its intentions to acquire Resolute on July 6, 2022. At that time Paper Excellence said, "Resolute will become a wholly-owned subsidiary of Domtar, under the auspices of the Group, and continue to operate on a business-as-usual basis under the Resolute name. The Resolute management team will remain in place at the company's headquarters. Considering the quality workforce available with Resolute and Domtar, Montreal will become an important hub for the Group's North American businesses. Furthermore, the Group plans to retain Resolute's production locations and levels of jobs."
Remi Lalonde, Resolute's President and CEO, stated, "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. The combined company will adopt best practices, sharing a common goal of sustainability leadership, and meaningful community engagement and partnerships, including with Indigenous communities."
