Paper Excellence Group Buys Resolute Forest Products
The Paper Excellence Group (PEG) has signed a deal to buy Resolute Forest Products Inc. in an agreement that values the company at $2.7 billion U.S. In a statement, Patrick Loulou, PEG chief strategy officer, said Resolute is an ideal fit for the company’s long-term growth strategy, complementing existing operations and adding capabilities in lumber and tissue.
Under the terms of the deal, parent company PEG, through subsidiary Domtar Corp. (purchased by PEG in 2021) will pay $20.50 U.S. per Resolute share, a 64% premium above the share’s July 5 closing price. Resolute will operate as a wholly owned subsidiary of Domtar. Resolute shareholders will also receive a contingent value right that entitles the holder to a share of future softwood lumber duty refunds on approximately $500 million U.S. in deposits paid by Resolute through June 30.
Resolute produces and sells a diverse range of forest products, including market pulp, tissue, wood products and papers. It owns or operates nearly 40 facilities, as well as power generation assets, in the U.S. and Canada. This includes sawmills at Glenwood and El Dorado, Ark. and Cross City, Fla., and a cogen plant at its Coosa Pines, Ala. market pulp mill.
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