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Paper Excellence Purchases Resolute

Richmond, BC-headquartered and privately held holding company, Paper Excellence Group, a manufacturer of pulp and paper products with seven facilities in Canada, through its wholly-owned subsidiary Domtar Corp. is acquiring Montreal-based Resolute Forest Products. The cash consideration represents an enterprise value of $2.7 billion, as reported by the companies.

Resolute will become a wholly-owned subsidiary of Domtar and continue to operate on a business-as-usual basis under the Resolute name. The Resolute management team will remain in place at the company’s headquarters.

Resolute owns or operates 40 facilities, as well as power generation assets, in the U.S. and Canada in four business segments: market pulp, tissue, paper and wood products. It operates four pulp mills, four tissue facilities, seven paper mills and 22 wood products facilities including 17 sawmills with 2.9 billion BF of capacity, two reman facilities, two engineered wood products facilities and a wood pellet plant. It also has 13 power generation assets, including seven hydroelectric facilities and six cogeneration facilities.

Earlier this year, Resolute acquired LP’s 50% interest in two Resolute-LP joint ventures that produce I-joists in Larouche and Saint Prime, Quebec.

In early 2020, Resolute acquired Conifex Timber Inc.’s three sawmills in the U.S. South with combined production capacity of 550MMBF, located in Cross City, Fla.; Glenwood and El Dorado, Ark.

Paper Excellence states it intends to support Resolute management’s existing growth strategy, focused on strategic investments in its lumber and pulp businesses, and maximizing the value of its paper and tissue businesses. Furthermore, the Group intends to form long-term partnerships with one or more universities in Quebec and Ontario to spearhead innovation in the field of fiber-based biomaterials.

Resolute was previously AbitibiBowater, which changed its name to Resolute in 2011.

Domtar’s principal executive office is in Fort Mill, SC.

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