Resolute Forest Products To Be Acquired By Domtar For About $2.7 Bln In Cash

(RTTNews) - Resolute Forest Products Inc. (RFP) said Wednesday that it would be acquired by Domtar Corporation (UFS), an arm of The Paper Excellence Group, for about $2.7 billion, or $20.50 per share in cash, including pension liabilities.

The cash portion of the merger consideration represents a premium of around 64 percent to Resolute's NYSE closing share price on July 5.

Under the Contingent Value Right (CVR), stockholders will receive any refunds on around $500 million of deposits on estimated softwood lumber duties paid by Resolute through June 30.

John Williams, CEO of Domtar, said, "The addition of Resolute enables us to continue executing our long-term business plan to drive growth to the benefit of all stakeholders…"

The acquirer noted that Resolute is an ideal fit for its long-term growth strategy. The firm also complements Paper Excellence Group's existing pulp, paper, and packaging businesses, and boosts new capabilities in lumber and tissue.

The transaction is expected to be completed in the first half of 2023.