The Paper Excellence Group, through its wholly-owned subsidiary Domtar Corporation, announced the successful closing of its previously announced acquisition of Resolute Forest Products Inc.
“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,” said Paper Excellence in a press release.
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 (“CVR”) 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).
“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,” stated Patrick Loulou, Vice Chairman and Chief Strategy Officer of the Paper Excellence Group. “Resolute has shown that it shares our values and high standards related to the environment, our communities, and our people.”
“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,” said Remi G. Lalonde, Resolute’s President and Chief Executive Officer. “The combined company will adopt best practices, sharing a common goal of sustainability leadership, and meaningful community engagement and partnerships, including with Indigenous communities.”
Paper Excellence first announced its intentions to acquire Resolute on July 6, 2022.