Domtar announced on Wednesday morning that it had reached an agreement to acquire all of the outstanding common shares of Resolute Forest Products.
The value of the transaction is estimated at around US$2.7 billion.
Resolute Forest Products will thus become a wholly-owned subsidiary of Domtar, a subsidiary of Groupe Papier Excellence, based in British Columbia.
The company will continue to operate under the same name, it was announced, adding that the management team of Resolute Forest Products will remain in place at the head office in Montreal.
“Given the quality of the workforce within Resolute and Domtar, Montreal will become an important hub for the Group’s North American activities. In addition, the Group plans to retain Resolute’s production sites and employment levels,” Groupe Papier Excellence said in a statement.
“This transaction will allow Resolute to accelerate its growth by having access to more tools, capital and opportunities to pursue its ambitions,” said Rémi G. Lalonde, President and Chief Executive Officer of Resolute.
“We will form a stronger, more resilient, diverse forest products company well positioned to compete on a truly global scale, with a shared commitment to be a trusted business partner, dedicated to sustainability and caring for its people. and its communities,” he added.
“We are delighted to welcome Resolute and its employees to the Papier Excellence family. Resolute fits perfectly with our long-term growth strategy. It complements our existing pulp, paper and packaging businesses and adds capabilities in lumber and tissue paper. We were able to see that Resolute is proud of its exceptional staff, its solid assets and its culture of excellence dating back more than two hundred years,” said Patrick Loulou, Vice-Chairman of the Board. and Chief Strategy Officer of Groupe Papier Excellence.
A global leader in the forest products industry, Resolute markets its products in more than 60 countries and operates some 40 facilities in the United States and Canada.
