Montreal-based lumber, paper and pulp producer Tembec has received an $807 million US offer to take over the company from Florida-based conglomerate Rayonier Advanced Materials.
Jacksonville-based Rayonier is offering Tembec shareholders $4.05 Cdn per share, or 0.2302 shares in the new combined company for every share that they own.
The deal, which would see Rayonier assume $487 million US of Tembec’s debt, would keep Tembec’s headquarters in Montreal and maintain its existing facilities.
“They’re all profitable,” Rayonier CEO Paul Boynton said on a conference call, referring to Tembec’s various operations in Ontario, Quebec and France. “We plan to run them all [and] invest in them all.”
The proposed deal comes in the middle of another flare-up in the longstanding softwood lumber dispute between the U.S. and Canada. Last month, Tembec was hit with a 19.88 percent preliminary duty on shipments of softwood lumber that it sends to the U.S.