(Montreal) Domtar Corporation, a subsidiary of British Columbia-based Excellence Paper Group, announced Wednesday that it is acquiring all of the outstanding common shares of Resolute Forest Products.
Posted at 7:22 pm
Updated at 7:38 am
The value of the transaction is estimated at 2.7 billion US.
While Resolute will continue to operate under the same name and Resolute’s management team will remain at its headquarters in Montreal, the group believes Paper Excellence will become an important hub for its North American operations.
Group Paper Excellence plans to retain Resolute’s production sites and employment levels.
Remy G. Lalonde, Resolute’s president and CEO, said in a statement that the transaction will allow the company to accelerate its growth by having more tools, capital and opportunities to pursue its ambitions.
Group Paper intends to undertake a feasibility study to eventually convert the Resolu newsprint mill in Gatineau for the production of excellence wrapping paper.
According to the company, the history of Resolute Forest products in Quebec spans more than 200 years.
Company Named in This Dispatch: Resolute Forest Products (TSX: RFP)
