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Paper Excellence Group enters into definitive agreement to acquire Resolute Forest Products Inc.

Date Announced

July 06, 2022

Lead Office

Montréal

Value

2.70 Billion USD

On July 6, 2022, Paper Excellence Group, through its wholly owned subsidiary Domtar Corporation ("Domtar"), entered into a definitive agreement to acquire Resolute Forest Products Inc. ("Resolute"). Domtar will acquire all of the outstanding common shares of Resolute. Each share will then be converted into the right to receive US$20.50 per share and one contingent value right tied to potential duty deposit refunds of up to US$500 million. The cash consideration represents an enterprise value of approximately US$2.7 billion, including pension liabilities and excluding the contingent value right. Resolute will become a wholly-owned subsidiary of Domtar and will continue to operate on business-as-usual basis under the Resolute name.

Paper Excellence Group, based in Richmond, British Colombia, is a diversified manufacturer of pulp and paper, including printing and writing, packaging and specialty paper.

Domtar, based in Fort Mill, South Carolina, is a provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and air-laid nonwovens.

Resolute, based in Montreal, is a forest products company with a diverse range of products, including market pulp, tissue, wood products and papers.

McCarthy Tétrault advised Paper Excellence Group with a team led by Jason Gudofsky (Competition) and Patrick M. Shea and that included Patrick Boucher, Hadrien Montagne, Konstantin Sobolevski, Sonia Bardakjian, Charles-Étienne Pressé (Business), Raj Juneja, Brendan Festeryga (Tax), Kate McNeill-Keller, Andre L. Baril, Caroline-Ariane Bernier, Nicole Deniset, Nadine Houle (Labour and Employment), Greg Winfield, Kelleher Lynch, Julia Miller (Pensions and Benefits), Joanna Rosengarten, Dominique Amyot-Bilodeau, Amelia Fong (Environment), Annie Gagnon-Larocque, Kent Beattie, Matthew Pekofsky, Rafaella Arapovic, Nicholas Alevras, Josee Sasseville (Real Estate), John W. Boscariol, Ashley Taborda (Trade), Marc Dorion (Quebec Governmental Relations), Véronique Wattiez Larose, Conrad Lee, Francis Langlois (Technology), Étienne Guertin, Achille Treuil, Nicolas Gervais (Finance), Marc-Alexandre Hudon (Aboriginal and Anti-Corruption), Reena Goyal, Jacob Stone, Will Horne, Alexandre Saulnier-Marceau, Elena Drouin (Energy), Debbie Salzberger, Gideon Kwinter (Competition), Jocelyn Perreault, Gabriel Faure, Marc-Étienne Boucher, Francois Alexandre Toupin (Bankruptcy and Restructuring), and Sarah Woods (Litigation).

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