The Paper Excellence group, a US-based manufacturer of pulp and specialty, printing, writing, and packaging papers, has closed its acquisition of Domtar, a leading provider of fibre-based products. Domtar will operate as a stand-alone business entity within the Paper Excellence group, with Domtar’s current CEO and management team remaining in place.
The acquisition further establishes Paper Excellence as an industry leader, significantly broadening its global reach and expanding its product range to include airlaid nonwovens and containerboard, in addition to significantly increased pulp and paper production. There are no further changes to operating locations, business plans, or Domtar’s employee base at this time, according to a press release by Paper Excellence.
Under terms of the agreement, Domtar stockholders received $55.50 for each share of Domtar common stock. Domtar common stock will no longer be listed for trading on the New York Stock Exchange or the Toronto Stock Exchange. Barclays served as exclusive financial advisor to Paper Excellence and Latham & Watkins, McMillan LLP, Miller Titerle, and Mehigan, served as legal advisors to Paper Excellence. Morgan Stanley, served as exclusive financial advisor to Domtar and Debevoise & Plimpton, and Osler, Hoskin & Harcourt, served as legal advisors to Domtar.
“Today marks a major milestone in the growth of Paper Excellence. We are excited to welcome Domtar and its impressive team to the Paper Excellence family. Under John Williams and Domtar’s capable management, we look forward to Domtar’s continued success across its manufacturing network in the US and Canada,” Joe Ragan, global chief financial officer of Paper Excellence said in a statement.
“As part of the Paper Excellence, the future is bright for Domtar. We will continue to earn the right to be the supplier of choice to our customers with sustainable paper, pulp and packaging products,” John Williams, president and CEO of Domtar said.