Canadian Manufacturing

Tembec gets US$807M friendly takeover offer from Florida-based Rayonier

Rayonier Advanced Materials supplies high purity cellulose used in applications such as cell phones, computer screens, filters, textiles and pharmaceuticals

May 25, 2017  by The Canadian Press

MONTREAL—A Florida-based company is moving to buy Tembec Inc. in a friendly takeover deal that values the Quebec-based forestry company at US$807 million, including assumed debt.

Rayonier Advanced Materials Inc. of Jacksonville, Fla., says the proposed deal announced this morning would create a more diversified company with a Canadian headquarters in Montreal.

Tembec shareholders are being offered C$4.05 in cash or 0.2302 of a Rayonier share, subject to a cap on the total amount of cash or shares that will be issued.

The purchase price is 37 per cent above Wednesday’s closing price for Tembec on the Toronto Stock Exchange.


Tembec is a diversified forestry company that produces lumber, paper, pulp for paper and specialty cellulose pulp that is used to make certain types of fabrics and other products.

Rayonier Advanced Materials is primarily a supplier of high purity cellulose, used in applications such as cell phones, computer screens, filters, textiles and pharmaceuticals. Its plants are in Florida and Georgia.

The proposed takeover requires approvals from courts, regulators and shareholders and is expected to close in the second half of 2017.

“This transaction advances our growth objective to pursue strategic acquisitions where we can leverage our core competencies to provide significant long-term shareholder return,” said Paul Boynton, Rayonier’s chairman, president and CEO.

“By joining forces, we are diversifying our product offering in high purity cellulose and expanding into the adjacent packaging and forest products markets with significant scale.”

Tembec CEO James Lopez said Rayonier is an ideal partner, given the complementary nature of their products, expertise and resources.

“They are committed to our operations and employees in Canada and France and, above all, to the values we share,” Lopez said in a joint statement issued by the companies before North American stock markets opened May 25

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