Paper Excellence has finalized the purchase of Resolute Forest Products, bringing a number of northwestern Ontario assets under its ownership.
Announced last spring, the US$2.7-billion deal will make Resolute a subsidiary of Domtar, which itself was acquired by Paper Excellence for $3 billion in 2021.
Resolute Forest Products owns and operates sawmills in Atikokan, Ignace and Thunder Bay, along with the Thunder Bay pulp and paper mill.
Paper Excellence said the pair of acquisitions expands its scale, product offering, and geographic reach.
“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,” Patrick Loulou, the company's vice-chairman and chief strategy officer, said in a March 1 news release.
“We are well positioned with the addition of competitive lumber capacity at a time of significant shortage in housing stock throughout North America.
“Resolute has shown that it shares our values and high standards related to the environment, our communities, and our people.”
Under the terms of the agreement, Resolute shareholders will receive $20.50 per share of Resolute common stock, as well as 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.
Following the aquisition, the company has said it would be "business as usual,” with the headquarters remaining in Montreal.
Paper Excellence produces more than seven million tons annually, with a workforce of more than 10,000 in 40 locations across the Americas and Europe.