Canadian company to obtain Domtar in $3 billion deal | Company

KINGSPORT — A Canadian-based pulp and paper corporation has agreed to acquire Domtar in a $3 billion hard cash offer that will see the corporation keep on to be led by its administration crew and the Kingsport mill continue being in operation.

Domtar manufactured the announcement Tuesday afternoon on its website, declaring the organization has entered into a strategic business combination with Paper Excellence — a privately held maker of pulp and specialty, printing, producing and packaging papers with operations in Canada and Brazil.

Paper Excellence is monetarily dependent in the Netherlands with its headquarters in Richmond, British Columbia. It is the 2nd-premier pulp and paper producer in Canada.

Less than the arrangement, Paper Excellence will acquire all of the issued and exceptional shares of Domtar common stock for $55.50 for every share in money. The purchase price tag represents a high quality of about 37% to Domtar’s closing share cost on May possibly 3.

“We are psyched to add Domtar and its employees to the Paper Excellence world household,” mentioned Joe Ragan, world-wide main economical officer of Paper Excellence. “This marks a main stage in our global technique of determining effectively-positioned property and positioning them for expansion. Domtar is a pure fit for our lifestyle of operational excellence.”

Domtar’s principal govt workplace is in Fort Mill, South Carolina. The Kingsport mill has been downtown considering the fact that 1916, and its conversion from fantastic paper to container board manufacturing will keep it listed here for an additional 100 years, firm officers not too long ago claimed.

Very last 7 days, Domtar officers verified its administration had been in talks with yet another business about a possible offer.

Soon after the deal closes, Paper Excellence intends to carry on the functions of Domtar as a stand-on your own business enterprise entity. As these, Domtar will proceed to be led by its administration group, and Paper Excellence programs to retain its corporate and production locations, in accordance to a push release about the acquisition.

“Our Kingsport mill has been sold and transformed names various moments above several years, and every single modify has had a favourable result in our local community. I am confident that will be the scenario this time far too,” stated Miles Burdine, president and CEO of the Kingsport Chamber of Commerce. “Our mill has been right here in excess of 100 yrs and a different productive 100 decades is in Kingsport’s long term.”

The settlement has been unanimously approved by the Domtar board of administrators. The transaction is expected to close in the next 50 percent of 2021, subject matter to Domtar shareholder acceptance, receipt of the demanded regulatory approvals, and other customary closing disorders.

Town Supervisor Chris McCartt said that after speaking with regional Domtar representatives, it was created apparent the acquisition will be a constructive and strategic transfer for the organization and the mill.

“I was happy to discover that the mill conversion will go on shifting ahead, which on completion will give competitive positions, just as the mill has completed for above 100 a long time,” McCartt said.