Resolute to Sell Thunder Bay Pulp and Paper Mill to Affiliate of Atlas Holdings
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Resolute Forest Products Inc., a subsidiary of Domtar Corporation and a part of the Paper Excellence Group, announced that it has entered into an asset purchase agreement to sell its Thunder Bay pulp and paper mill in Ontario, Canada, to an affiliate of Atlas Holdings.
The Thunder Bay mill produces northern bleached softwood kraft and northern bleached hardwood kraft pulp, along with newsprint and directory grades of paper.
Resolute will continue to operate its sawmills and woodlands operations in Northwestern Ontario. At the closing of the transaction, the parties will enter into certain ancillary agreements, including a long-term woodchip and biomass supply agreement pursuant to which Resolute will continue to provide chips and biomass to the Thunder Bay mill.
"The mill is an exceptional asset," said Remi G. Lalonde, Resolute's president and chief executive officer. "I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future, and I sincerely wish them all the best."
According to Atlas Holdings, Thunder Bay will operate as a standalone company and a member of Atlas' global family of manufacturing and distribution businesses.
"We are extremely excited about the opportunity at Thunder Bay," said Atlas Principal Daniel Merriam. "Atlas is the ideal owner to take this great operation into its next chapter, as a strong and independent company. As always, we will partner with strong local leadership to strengthen Thunder Bay's operations, to serve Thunder Bay's customers in a highly responsive fashion, and to strongly support the local and regional community. We recognize Thunder Bay's historic and unique position in Ontario and the broader pulp and paper industry."
The sale of the Thunder Bay mill is a requirement under the consent agreement entered into between Domtar Corporation and the Canadian Commissioner of Competition and registered with the Canadian Competition Tribunal in connection with its review of Domtar Corporation's recent acquisition of Resolute.
The transaction, expected to close in the second half of the year, is subject to the satisfaction or waiver of closing conditions, including obtaining required regulatory approvals.
