Resolute Forest Products to be Acquired by Paper Excellence Group

SEATTLE (Scrap Monster): The Paper Excellence Group announced that it has entered into a definitive agreement with Resolute Forest Products Inc. to acquire the latter’s outstanding common shares through its wholly-owned subsidiary Domtar Corporation. The strategic acquisition is intended to accelerate Paper Excellence’s growth strategy by adding complementary capabilities.

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According to company press release, Resolute will be merged with a newly created subsidiary of Domtar. The deal will provide for conversion of each share of Resolute common stock into the right to receive $20.50 per share. It will also provide for one contingent value right tied to potential duty deposit refunds of up to $500 million. The merger is subject to the approval of the transaction by a majority of the outstanding shares of Resolute.

Patrick Loulou, vice chair and chief strategy officer of the Paper Excellence Group welcomed Resolute and its employees to the Paper Excellence family. Resolute is an ideal fit for its long-term strategy, complements its existing pulp, paper and packaging businesses and adds capabilities in lumber and tissue, he added.

The transaction is expected to close in H1 2023, following stockholder and regulatory approvals and satisfaction of other customary closing conditions.