Jacksonville, Florida-based Rayonier Advanced Materials (NYSE:RYN) has reached a deal to purchase Tembec Inc., a Canadian producer of packaging and paper products, for approximately $807 million. The deal comes at a time when Canada is resisting efforts by the U.S. Department of Commerce to impose a 20 percent tariff on Canadian lumber imports. Tembec Inc. is a Montreal, Canada-based manufacturer of forest products sold in the U.S., Canada, China, the European Union and internationally. The target produces a variety of materials comprised of spruce, pine, and fir dimensional lumber products for the residential and commercial construction industries. Tembec’s principal operations are based in Canada and France, where the company produces lumber, paper, pulp and “high purity” cellulose. Tembec employs approximately 3,000 employees. "This transaction advances our growth objective to pursue strategic acquisitions where we can leverage our core competencies,” states Rayonier CEO Paul Boynton. Rayonier is also a global supplier of high purity cellulose, a natural polymer used in the making of cell phones, computer screens, filters, textiles and pharmaceuticals. The buyer expects to expand its operations into packaging and forest products as a result of the Tembec deal. Rayonier currently ships products to five continents, 35 countries and 80 ports around the world. More construction-related M&A is expected to continue throughout 2017. Related acquisitions include: Blue Wolf Capital Partners’ purchase of Tenon Holding’s U.S. mill and building products business; One Rock Capital’s purchase of North Pacific Paper Co., a paper mill operator.; Southwire Co. LLC’s buying United Copper Industries Inc., a maker of electrical wire, from KPS Capital Partners; United Subcontractors Inc.’s purchase of insulation contractor Southern Foam and Coating; Meridian General Capital’s buying of PowderCoat Services Inc., which provides coating services to construction, automotive, consumer and electronics sectors; and ABC Supply Co.’s purchase of L&W Supply, a distributor of drywall, ceiling tiles and steel framing materials to building contractors, from USG Corp. (NYSE: USG). Bank of America Merrill Lynch (NYSE: BAC) is serving as financial adviser to Rayonier. Hogan Lovells, McCarthy Tétrault LLP, and Wachtell Lipton Rosen & Katz are serving as Rayonier’s legal advisers. Scotia Capital Inc. and National Bank Financial are acting as financial advisers to Tembec. Stikeman Elliott LLP, Cahill Gordon & Reindel LLP, Dechert LLP, and Slaughter and May are serving as legal advisers to Tembec.