Canada’s Paper Excellence announces deal to buy Domtar Corp. in US$3B deal

By The Canadian Press

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. 

They say Domtar will continue to be led by its management team and Paper Excellence plans to keep its corporate and production locations.

Shares in Domtar were up C$8.12 or 14 per cent at C$65.40 on the Toronto Stock Exchange.

“This agreement enables our shareholders to realize certain and immediate cash value at a significant premium for their shares,” Domtar CEO John Williams said in a statement.

“This transaction validates our long-term strategic plan for our leading paper and pulp businesses, and for our continued expansion into packaging.”

This report by The Canadian Press was first published May 11, 2021.

Companies in this story: (TSX:UFS)

The Canadian Press

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