The transaction is expected to close by the end of Q2
The Paper Excellence Group announced that its subsidiary, Domtar will sell its Kamloops pulp mill. (Credit: SpencerWing from Pixabay)
The Paper Excellence Group, a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers, today announced its subsidiary, Domtar Inc., has entered into an agreement with an affiliate of Kruger Specialty Papers Holding L.P. to sell its Kamloops pulp mill for an undisclosed amount.
When the Paper Excellence Group acquired Domtar on November 30, 2021 and entered into a Consent Agreement with the Commissioner of Competition (Canada), it agreed to sell Domtar’s pulp mill in Kamloops, British Columbia in order to resolve the Commissioner’s concerns about the Merger’s implications on the purchase of wood fibre from the Thompson/Okanagan region in British Columbia. Once approved by the Commissioner, this transaction satisfies the requirements of the Consent Agreement.
The transaction is expected to close by the end of Q2.
Advisors
BMO Capital Markets served as exclusive financial advisor to Domtar, McMillan LLP served as legal advisors to the Paper Excellence Group, and KPMG served as tax advisors to Domtar.
ScotiaBank served as exclusive financial advisor to Kruger, and McCarthy Tétrault LLP served as legal advisors.
Source: Company Press Release