(Montreal) Paper Excellence announced on Tuesday that it has acquired pulp and paper producer Domtar.
Under the agreement, Richmond, British Columbia, will raise US $ 55 per share of Domtar.
Paper Excellence, a diversified global manufacturer of specialty pulp and papers, printing, writing and packaging, operates seven mills in Canada, producing and shipping 2.8 million tons of production annually. It employs more than 2,800 people.
The two companies said in a statement that they intend to continue with Paper Excellence DomTar as an independent business entity.
Domtar hopes to continue to lead the current management team, while Paper Excellence hopes to retain its offices and production facilities.
Domtor’s stock rose $ 8.77 or 15.3% to trade at $ 66.05 on the Toronto Stock Exchange this morning.
“This agreement allows our shareholders to realize the specific and instant cash value and significant premium for their shares,” Domtar President and CEO John Williams said in a statement.
“This transaction confirms our long-term strategic plan for our major pulp and paper sectors, as well as our continued expansion into the packaging sector.”