Paper Excellence Purchases Resolute
Richmond, BC-headquartered and privately held holding company, Paper Excellence Group, a manufacturer of pulp and paper products with seven facilities in Canada, through its wholly-owned subsidiary Domtar Corp. is acquiring Montreal-based Resolute Forest Products. The cash consideration represents an enterprise value of $2.7 billion, as reported by the companies.
Resolute will become a wholly-owned subsidiary of Domtar and continue to operate on a business-as-usual basis under the Resolute name. The Resolute management team will remain in place at the company’s headquarters.
Resolute owns or operates 40 facilities, as well as power generation assets, in the U.S. and Canada in four business segments: market pulp, tissue, paper and wood products. It operates four pulp mills, four tissue facilities, seven paper mills and 22 wood products facilities including 17 sawmills with 2.9 billion BF of capacity, two reman facilities, two engineered wood products facilities and a wood pellet plant. It also has 13 power generation assets, including seven hydroelectric facilities and six cogeneration facilities.
Earlier this year, Resolute acquired LP’s 50% interest in two Resolute-LP joint ventures that produce I-joists in Larouche and Saint Prime, Quebec.
In early 2020, Resolute acquired Conifex Timber Inc.’s three sawmills in the U.S. South with combined production capacity of 550MMBF, located in Cross City, Fla.; Glenwood and El Dorado, Ark.
Paper Excellence states it intends to support Resolute management’s existing growth strategy, focused on strategic investments in its lumber and pulp businesses, and maximizing the value of its paper and tissue businesses. Furthermore, the Group intends to form long-term partnerships with one or more universities in Quebec and Ontario to spearhead innovation in the field of fiber-based biomaterials.
Resolute was previously AbitibiBowater, which changed its name to Resolute in 2011.
Domtar’s principal executive office is in Fort Mill, SC.
Latest News
Major Mill Announcements Come From Across The U.S.
Biewer Plans For Second SYP Greenfield Mill: Biewer Lumber is constructing its second greenfield southern yellow pine sawmill in Mississippi, this one in Winona, about 100 miles north of its first one in Newton, and…
Familiar Face Behind Peak Renewables
Peak Renewables reports it is building a 600,000 tonne per year industrial wood pellet facility in Fort Nelson, British Columbia. Fort Nelson First Nation will reportedly have equity in the plant, which is anticipated to be in…
U.S. Housing Starts Continue Upward
U.S. housing starts (single-family and multi-family combined) were a seasonally adjusted rate of 1.547 million in November, an increase of 1.2% over October and 12.8% above November 2019, according to the U.S. Census Bureau and U.S….
Find Us On Social
Newsletter
The monthly Timber Processing Industry Newsletter reaches over 4,000 mill owners and supervisors.
Subscribe/Renew
Timber Processing is delivered 10 times per year to subscribers who represent sawmill ownership, management and supervisory personnel and corporate executives. Subscriptions are FREE to qualified individuals.
Advertise
Complete the online form so we can direct you to the appropriate Sales Representative.