Paper Excellence Group acquires Resolute Forest Products
by CM Staff
The Paper Excellence Group says this addition will help the corporation build its North American portfolio.
MONTREAL — Domtar, a subsidiary of the Paper Excellence Group, has entered into an agreement with Resolute Forest Products Inc. under which Domtar will acquire all of the outstanding shares of Resolute stock.
Domtar acquired Resolute at $20.50 per share and one contingent value right tied to potential duty deposut refunds of up to $500 million. The Paper Excellence Group says this addition will help the corporation build its North American portfolio.
“We are excited to welcome Resolute and its employees to the Paper Excellence family. Resolute is an ideal fit for our long-term growth strategy. It complements our existing pulp, paper and packaging businesses and adds capabilities in lumber and tissue. We have seen firsthand that Resolute prides itself on its great people, strong assets and a culture of excellence going back more than two hundred years,” said Patrick Loulou, vice chair and chief strategy officer of the Paper Excellence Group in a statement.
Resolute will become a wholly-owned subsidiary of Domtar and continue to operate on a business-as-usual basis under the Resolute name. The Paper Excellence Group says Montreal will become an important hub for the Group’s North American businesses due to the workforce established at Resolute and Domtar. Furthermore, the Paper Excellence Group plans to retain Resolute’s production locations and levels of jobs.