Paper Excellence, a global manufacturer of pulp and specialty, printing, writing, and packaging papers, and Domtar, a provider of fiber-based products, have entered into a strategic business combination under which the Paper Excellence group of companies will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 per share, in cash.
Joe Ragan, global chief financial officer of Paper Excellence, commented, “We are excited to add Domtar and its employees to the Paper Excellence global family. This marks a major step in our global strategy of identifying well-positioned assets and positioning them for growth. Domtar is a natural fit for our culture of operational excellence. We are enthusiastic about entering the American market as we continually improve Paper Excellence’s ability to serve its expanding blue-chip customer base.”
“This agreement enables our shareholders to realize certain and immediate cash value at a significant premium for their shares,” said John D. Williams, President and Chief Executive Officer of Domtar. “This transaction validates our long-term strategic plan for our leading paper and pulp businesses, and for our continued expansion into packaging.”
Barclays is serving as exclusive financial advisor to Paper Excellence and Latham & Watkins LLP, McMillan LLP, Miller Titerle LLP, and Mehigan LLP, are serving as legal advisors to Paper Excellence. Morgan Stanley & Co. LLC, is serving as exclusive financial advisor to Domtar and Debevoise & Plimpton LLP, and Osler, Hoskin & Harcourt LLP, are serving as legal advisors to Domtar.