MONTRÉAL, May 30, 2023
/PRNewswire/ - Resolute Forest Products Inc., a subsidiary of
Domtar Corporation and a part of the Paper Excellence Group, today
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.
Advisors
BMO Capital Markets is serving as exclusive financial advisor to
Resolute, and Stikeman Elliott LLP is serving as its legal
advisor.
Cautionary Statements Regarding
Forward-Looking Information
Expectations with respect to the closing are forward-looking
statements. Actual results could differ materially from those
suggested by these statements for a number of reasons, including
either party's failure to satisfy the closing conditions and other
factors impacting the paper industry or the mill.
About Resolute Forest Products
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% 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.
Headquartered in Montreal
(Quebec), the company is a
subsidiary of Domtar Corporation and a part of the Paper Excellence
Group. To learn more, visit www.resolutefp.com.
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SOURCE Resolute Forest Products Inc.