Texarkana, Texas 2021-05-11 16:38:09 –
Richmond, British Columbia & Fort Mill, SC- (Business Wire) -Paper Excellence, a global diversification manufacturer of pulp and paper, printing, writing and wrapping paper, and leading Domtar (NYSE: UFS) (TSX) : UFS) Fiber-based product providers today signed a strategic business combination in which companies in the Paper Excellence Group will acquire all issued and all outstanding shares of Domtar common stock for $ 55.50 per share in cash. Was announced.
The purchase price is a premium of approximately 37% of Domtar’s closing price on May 3, 2021, the last trading day prior to Domtar’s statement in response to media coverage of the potential business combination of Domtar and Paper Excellence. , Approximately 44% of the volume-weighted average price for 30 days as of May 3, 2021. A full cash transaction is worth about $ 3 billion in corporate value.
After the transaction closes, Paper Excellence will continue to operate Domtar as an independent entity. As a result, Domtar will continue to be led by management and Paper Excellence will maintain its enterprise and production base.
Joe Ragan, Global Chief Financial Officer of Paper Excellence, commented: This represents a key step in our global strategy of identifying well-placed assets and placing them for growth. Domtar fits naturally into the culture of operational excellence. We are committed to entering the US market as we continue to improve Paper Excellence’s ability to serve our growing, high-quality customer base. “
“We have long admired Domtar’s vast global footprint and believe it will be a valuable addition to Paper Excellence. Investing in Domtar’s assets and people for long-term growth. I’m looking forward to it, “Ragan concludes.
John D. Williams, President and Chief Executive Officer of Domtar, said: “This transaction validates our long-term strategic plan for continued expansion into our major paper and pulp businesses and packaging.”
“Our dedicated employees have contributed to Domtar’s success. We are pleased that this deal supports the strategy our team has been working hard on development over the last few years. “Williams continued. “As part of Paper Excellence, we build on that momentum.”
The agreement was unanimously approved by the Domtar Board of Directors. The transaction is expected to close in late 2021 subject to Domtar’s shareholder approval, the required regulatory approval, and other customary closing conditions.
Canadian Company to Buy Domtar Source link Canadian Company to Buy Domtar