Montreal, Quebec based Resolute Forest Products Inc., a subsidiary of Domtar Corporation and a part of the Paper Excellence Group, announced that it has entered into an asset purchase agreement to sell its Thunder Bay (Ontario) pulp and paper mill to an affiliate of Atlas Holdings.
The transaction, expected to close in the second half of the year, is subject to the satisfaction or waiver of closing conditions, including obtaining required regulatory approvals.
Resolute will continue to operate its sawmills and woodlands operations in Northwestern Ontario. At the closing of the transaction, the parties will enter into certain ancillary agreements, including a long-term woodchip and biomass supply agreement pursuant to which Resolute will continue to provide chips and biomass to the Thunder Bay mill.
“The mill is an exceptional asset,” said Remi G. Lalonde, Resolute’s President and Chief Executive Officer. “I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future, and I sincerely wish them all the best.”
The sale of the Thunder Bay mill is a requirement under the consent agreement entered into between Domtar Corporation and the Canadian Commissioner of Competition and registered with the Canadian Competition Tribunal in connection with its review of Domtar Corporation’s recent acquisition of Resolute.
BMO Capital Markets is serving as exclusive financial advisor to Resolute, and Stikeman Elliott LLP is serving as its legal advisor.
Resolute Forest Products is a leading producer of a diverse range of wood, pulp, tissue and paper products, which are marketed in 60 countries. The company operates some 40 facilities, as well as power generation assets, in the United States and Canada and has third-party certified 100 percent of its managed woodlands to internationally recognized sustainable forest management standards. Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices.
In January 2023, Paper Excellence Group, through its wholly-owned subsidiary of Domtar Corporation, announced the acquisition of Resolute Forest Products. The acquisition was designed to create a stronger and more resilient diversified forest products company, manufacturing a range of pulp products and specialty, printing, writing, and packaging papers, as well as lumber and tissue.
