Canadian pulp-and-paper producer Paper Excellence agreed to acquire Domtar in a US$2.8 billion all-cash deal to expand in the US market.
Paper Excellence will pay US$55.50 per Domtar share in the transaction, the Richmond, British Columbia-based company announced Tuesday, MAy 11, in a statement. That represents a 37% premium to Domtar’s May 3 closing price, when Bloomberg reported on talks between the companies, and values the Fort Mill, South Carolina-based company at US$2.8 billion, based on about 50.2 million shares outstanding.
“We have long admired Domtar’s expansive global footprint and believe that it will be a valuable addition to Paper Excellence,” Joe Ragan, Global Chief Financial Officer of Paper Excellence, said in the statement. “This marks a major step in our global strategy of identifying well-positioned assets and positioning them for growth.”
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