First Quality Enterprises, Inc. and Domtar Corporation, a wholly owned subsidiary of the Paper Excellence Group, today announced that they have entered into a definitive agreement for First Quality to acquire Domtar’s pulp mill located in Dryden, Ontario, Canada.
The Dryden Mill produces high quality Northern Bleached Softwood Kraft (NBSK) pulp for customers in North America.
According to Domtar, First Quality has made clear its commitment to the Dryden Mill, its employees and the surrounding community and that First Quality fully intends to continue business operations consistent with past practices.
“First Quality saw this as an excellent strategic investment given the knowledgeable leadership team, premium quality NBSK coming from the mill, and the access and availability to high quality fiber supplies long term. We look forward to partnering with the existing mill team members, customers, suppliers, and community stakeholders to continue the mill’s successful history of local engagement and economic development,” said Jim Dodge, Chief Financial Officer of First Quality.
The transaction, expected to close early in the third quarter, is subject to customary closing conditions, including receipt of required regulatory approvals and the closing of the Resolute Forest Products Inc. transaction.
The sale of the Dryden Mill is a requirement under the consent agreement between Domtar and the Canadian Competition Bureau in connection with its review of Domtar’s planned acquisition of Resolute. The sale is subject to regulatory conditions, including approval by the Commissioner of Competition and clearance under the Hart-Scott-Rodino Act.
The Resolute transaction remains on course to close in the first half of 2023, subject to the satisfaction or waiver of the other conditions to the closing of the merger.
