Paper Excellence agrees to buy Domtar in US$2.8 billion deal
Marcy Nicholson and Doug Alexander, Bloomberg News
Paper Excellence to buy Domtar in deal valued at US$3B VIDEO SIGN OUT
Canadian pulp-and-paper producer Paper Excellence agreed to acquire Domtar Corp. in a US$2.8 billion all-cash deal to expand in the U.S. market.
Paper Excellence will pay US$55.50 per Domtar share in the transaction, the Richmond, British Columbia-based company said Tuesday in a statement. That represents a 37 per cent premium to Domtarâs May 3 closing price, when Bloomberg reported on talks between the companies, and values the Fort Mill, South Carolina-based company at US$2.8 billion, based on about 50.2 million shares outstanding.
May 11, 2021 - 2:07 PM
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Domtar Corp
(NYSE: UFS) shares shot up over 13% in premarket trading after Paper Excellence entered into a definitive agreement to acquire all of the issued and outstanding shares of Domtar common stock.
The strategic transaction seeks to accelerate Paper Excellence’s growth strategy, and expands Domtar’s financial resources, potential customer base and product offerings with Domtar set to continue as a stand-alone business entity after the transaction.
Domtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and airlaid nonwovens. With approximately 6,400 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annua
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
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.