Paper Excellence to acquire fiber-based products provider Domtar for $3bn
Paper Excellence, a Canadian pulp and paper manufacturer has agreed to acquire Domtar, a US-based provider of fiber-based products, for $55.5 per share in cash or about $3 billion.
Domtar’s fiber-based products include communication, packaging, and specialty papers, market pulp, and airlaid nonwovens.
The company employs nearly 6,400 people and serves over 50 countries.
Listed on the New York and Toronto Stock Exchanges, Domtar has annual sales of about $3.7 billion.
On the other hand, Paper Excellence manufactures pulp and specialty, writing, printing, and packaging papers. The company has seven mills in Canada, which produce and dispatch more than 2.8 million tonnes per year with a workforce of over 2,800 people.
Paper Excellence to acquire fiber-based products provider Domtar for $3bn. Photo courtesy of Domtar Corporation.
Joe Ragan – Global Chief Financial Officer of Paper Excellence said: “We are excited to add Domtar and its employees to the Paper Excellence global family. This marks a major step in our global strategy of identifying well-positioned assets and positioning them for growth.
“Domtar is a natural fit for our culture of operational excellence. We are enthusiastic about entering the American market as we continually improve Paper Excellence’s ability to serve its expanding blue-chip customer base.”
Following the closing of the deal, Paper Excellence plans to continue Domtar’s operations as an independent business entity. Domtar’s management team will continue to lead its operations and its corporate and production locations will be retained by Paper Excellence.
John D. Williams – President and CEO of Domtar said: “This agreement enables our shareholders to realize certain and immediate cash value at a significant premium for their shares.
“This transaction validates our long-term strategic plan for our leading paper and pulp businesses, and for our continued expansion into packaging.”
The deal, which is subject to Domtar’s shareholder approval, regulatory approvals, and other customary closing conditions, is likely to close in the latter half of this year.