Domtar Corporation, a subsidiary of British Columbia-based Excellence Paper Group, announced on Wednesday the acquisition of all of the outstanding common shares of Resolute Forest Products.
The transaction is valued at US$2.7 billion.
Resolute will continue to operate under the same name and Resolute’s management team will remain at its head office in Montreal, which Groupe Papier Excellence believes will become an important hub for its North American activities.
Groupe Papier Excellence plans to retain Resolute’s production sites and employment levels.
Rémi G. Lalonde, President and CEO of Resolute, says in a statement that the transaction will allow the company to accelerate its growth by having access to more tools, capital and opportunities to pursue its ambitions. .
Groupe Papier Excellence intends to carry out a feasibility study for the eventual conversion of the Résolu newsprint mill in Gatineau for the production of wrapping paper.
The history of Resolute Forest Products in Quebec goes back more than 200 years, according to the company.
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