The Paper Excellence Group, a manufacturer of specialty printing, writing and packaging pulp and papers headquartered in Richmond, British Columbia, has completed the acquisition of Domtar, a product supplier fiber-based based in Fort Mill, South Carolina. Paper Excellence Group produces over 7 million tonnes of pulp and specialty papers, printing, writing and packaging per year with a workforce of over 10,000 people at nearly 40 sites across the Americas and Europe.
The company initially announced the acquisition, worth around $ 3 billion, in May. According to a press release from the Paper Excellence Group, the acquisition will broaden the scope of the business and expand its product line to include nonwovens and air-laid containerboard in addition to increased pulp production and of paper. Paper Excellence also owns pulp and paper mills that were operated by the former Catalyst Paper.
Domtar is currently converting a printing and writing plant to a containerboard plant in Kingsport, Tennessee. The company announced in August 2020 its intention to invest between 300 and 350 million dollars in this facility, which will produce 600,000 tonnes per year of recycled liner and backing board. The company claims that this plant will consume approximately 700,000 tonnes of recovered fiber per year to produce this containerboard. This project is expected to be completed by the first quarter of 2023.
Domtar will operate as a stand-alone business entity within the Paper Excellence group. Domtar President and CEO John Williams and his management team will also remain the same, according to Paper Excellence Group.
“We are delighted to welcome Domtar and its impressive team to the Paper Excellence family,” said Joe Ragan, Global CFO of Paper Excellence. “Under the able leadership of John Williams and Domtar, we look forward to Domtar’s continued success across its manufacturing network in the United States and Canada.
Williams adds, “We will continue to earn the right to be our customers’ supplier of choice with sustainable paper, pulp and packaging products. “
Barclays has been the exclusive financial advisor to Paper Excellence and Latham & Watkins LLP, McMillan LLP, Miller Titerle + Co. and Mehigan LLP have served as legal advisers to the Paper Excellence Group. Morgan Stanley & Co. LLC has been the exclusive financial advisor to Domtar and Debevoise & Plimpton LLP and Osler, Hoskin & Harcourt LLP has been its legal advisers.
Under the agreement, Domtar shareholders received $ 55.50 for each Domtar common share. Domtar’s common shares will no longer be listed on the New York Stock Exchange or the Toronto Stock Exchange.