Paper Excellence to buy Montreal s Domtar for US$2 8-billion in shift into U S market theglobeandmail.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from theglobeandmail.com Daily Mail and Mail on Sunday newspapers.
Canada s Paper Excellence announces deal to buy Domtar Corp. in US$3B deal
by The Canadian Press
Last Updated May 11, 2021 at 10:58 am EDT
MONTREAL Paper Excellence has signed a deal to buy Domtar Corp. in a deal with an enterprise value of about US$3 billion.
Under the agreement, the Richmond, B.C.-based company has agreed to pay US$55 per Domtar share in cash.
Paper Excellence, a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers, operates seven mills in Canada producing and shipping over 2.8 million tonnes of product annually with a workforce of more than 2,800.
The companies say Paper Excellence intends to continue the operations of Domtar as a stand-alone entity.
By Reuters Staff
(Adds deal details, industry background)
May 11 (Reuters) - Paper Excellence said it will buy U.S rival Domtar Corp in an all-cash deal valued at about $3 billion, as the Canadian paper and packaging company looks enter the U.S. market.
The pandemic-induced lockdowns of schools, offices, retailers and other businesses have hit orders for paper, while demand for pulp, primarily used in tissues, has picked up.
Fort Mill, South Carolina-based Domtar is among the world’s largest producers of market pulp used to make paper, tissue, towels, diapers, personal hygiene items, and one of North America’s top producers of freesheet paper, used for everything from business memos to copy paper.
The purchase price represents a premium of approximately 37 per cent to Domtar’s closing share price on May 3, the last trading day prior to the Domtar’s statement responding to media reports regarding a potential business combination between Domtar and Paper Excellence, and a premium of approximately 44 per cent to the 30-day volume-weighted average price as of May 3. After the transaction closes, Paper Excellence intends to continue the operations of Domtar as a stand-alone business entity. As such, Domtar will continue to be led by its management team and Paper Excellence plans to retain its corporate and production locations. “This marks a major step in our global strategy of identifying well-positioned assets and positioning them for growth,” said Joe Ragan, global chief financial officer of Paper Excellence. “Domtar is a natural fit for our culture of operational excellence. We are enthusiastic about entering the American market as we continually improve Paper Ex
Winnipeg Free Press By: Ross Marowits, The Canadian Press Posted:
Last Modified: 4:02 PM CDT Tuesday, May. 11, 2021 Save to Read Later
Paper Excellence is expanding into the U.S. with a deal to buy Domtar Corp. in an agreement with an enterprise value of about US$3 billion.
Domtar president and CEO John Williams arrives at the paper company s annual meeting, Wednesday, April 30, 2014 in Montreal. THE CANADIAN PRESS/Paul Chiasson
Paper Excellence is expanding into the U.S. with a deal to buy Domtar Corp. in an agreement with an enterprise value of about US$3 billion.
The Richmond, B.C.-based company will pay US$55 per Domtar share in cash, a 37 per cent premium from May 3 when a media report disclosed a possible transaction.