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.
www.resolutefp.com