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.
Latest News
LOG ROLLS OFF TRUCK AND INJURES DRIVER
BACKGROUND: A log truck driver was unbinding his load of double-bunked logs at a mill woodyard in the South. He was wearing a hard hat. PERSONAL CHARACTERISTICS: The driver was experienced. He had been trained to inspect the load of logs prior to removing the binding...
DISLODGED TREE KILLS LOGGER
BACKGROUND: A logging company employee was felling trees with a chain saw on a warm summer day in the Appalachians. PERSONAL CHARACTERISTICS: The 43-year-old employee had worked for his present employer about five months. His normal job was trimming trees that had...
Have A Question?
Send Us A Message