Paper Excellence Entered Into Agreement to Acquire Domtar

The transaction represents an enterprise value of approximately $3 billion.

SEATTLE (Scrap Monster): Paper Excellence and Domtar Corporation announced that the two companies have entered into a strategic definitive agreement under which the Paper Excellence Group of Companies will acquire all of the issued and outstanding shares of Domtar for $55.50 per share.

The all-cash deal is expected to close in H2 2021, subject to Domtar shareholder approval, regulatory approvals and other customary closing conditions. It must be noted that the transaction has already received unanimous approval of Domtar Board of Directors.

The purchase price represents a premium of nearly 37% to Domtar’s share price as on 3rd May, 2021 closing and almost 44% premium to the 30-day volume-weighted average price as on that date.  The transaction represents an enterprise value of approximately $3 billion.

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Upon closing of the transaction, Paper Excellence plans to retain all of Domtar’s corporate and production facilities. Domtar will continue to be led by its management team. Also, the operations of Domtar will be continued as a stand-alone business entity.

Commenting on the landmark deal, Joe Ragan, Global Chief Financial Officer, Paper Excellence Group said that the move marks a major step in its global strategy of identifying well-positioned assets and positioning them for growth. Domtar is a natural fit and the company feels enthusiastic about entering the American market, extending its services to blue-chip customer base.