Resolute Forest Products Sold to Paper Excellence
Paper Excellence Welcomes Resolute Into Its Family of Companies
(All financial information is in U.S. Dollars)
RICHMOND, BC, March 1, 2023 /CNW/ - The Paper Excellence Group (the "Group"), through its wholly-owned subsidiary Domtar Corporation ("Domtar"), today announced the successful closing of its previously announced acquisition of Resolute Forest Products Inc. ("Resolute") (NYSE: RFP) (TSX: RFP). Today's acquisition creates a stronger and more resilient diversified forest products company, manufacturing a range of pulp products and specialty, printing, writing, and packaging papers, as well as lumber and tissue. The acquisition of Domtar in 2021 and Resolute today significantly increases the Group's scale, overall product offering and geographic reach.
"We are thrilled to welcome Resolute into the Paper Excellence Group. Resolute's business is complementary to our own. It introduces new products to our offering and allows us to welcome an impressive workforce, strengthening our existing team. We are well positioned with the addition of competitive lumber capacity at a time of significant shortage in housing stock throughout North America," stated Patrick Loulou, Vice Chairman and Chief Strategy Officer of the Paper Excellence Group. "Resolute has shown that it shares our values and high standards related to the environment, our communities, and our people."
"Together we are creating a stronger player in the global marketplace. We look forward to collaborating with our new colleagues, generating long-term value and driving sustainable economic activity in the communities where we operate," said Remi G. Lalonde, Resolute's President and Chief Executive Officer. "The combined company will adopt best practices, sharing a common goal of sustainability leadership, and meaningful community engagement and partnerships, including with Indigenous communities."
Under the terms of the agreement, Resolute stockholders are receiving $20.50 for each share of the Resolute common stock. They also receive one contingent value right ("CVR") per share (on a fully diluted basis) entitling the holder to a share of potential future softwood lumber duty deposit refunds on about $500 million of deposits paid by Resolute. Resolute common stock will cease to be listed on the New York Stock Exchange and the Toronto Stock Exchange.
Barclays served as exclusive financial advisor to Paper Excellence, and Latham & Watkins LLP, McMillan LLP, McCarthy Tétrault LLP, and Mehigan LLP served as legal advisors.
CIBC Capital Markets served as exclusive financial advisor to Resolute, and Paul, Weiss, Rifkind, Wharton & Garrison LLP, and Stikeman Elliott LLP served as its legal advisors.
Barclays, CoBank, and Bank of Montreal provided financing to Domtar in connection with the transaction.
About Paper Excellence Group
The Paper Excellence Group is a privately held diversified manufacturer of pulp and specialty, printing and writing, and packaging papers, producing over 7 million tons annually with a workforce of over 10,000 in its nearly 40 locations across the Americas and Europe. Through its individual business units, the Group leverages its operational excellence and sustainable high-quality, cost-effective products to deliver high quality pulp and paper to its customers around the world. For more information on Paper Excellence, please visit www.paperexcellence.com. To learn more about Resolute Forest Products, visit www.resolutefp.com.
SOURCE Paper Excellence Group
For further information: Paper Excellence Contacts: Media: Martin Croteau, Tel.: 418-956-6898, Email: email@example.com; Resolute Forest Products Contacts: Investors: Marianne Limoges, Treasurer and Vice President, Investor Relations, Tel.: 514-394-2217 or 514-838-0949 (cell), Email: firstname.lastname@example.org; Media and Others: Seth Kursman, Vice President, Corporate Communications, Sustainability and Government Affairs, Tel.: 514-394-2398 or 514-826-5040 (cell), Email: email@example.com