Paper Excellence Explores Deal to Take Domtar Private
Tuesday, May 4, 2021 2:30 pm
FORT MILL, S.C. (From news reports) -- Canadian paper and packaging company Paper Excellence is exploring a deal to acquire U.S. rival Domtar Corp., according to people familiar with the matter. Domtar rose as much as 21% in after-market trading. The companies are working with advisers on a potential transaction that would take U.S.-listed Domtar private, said the people, who asked not to be identified because the details aren't public. A deal could value Domtar's shares in the mid-$50s, one of the people said. No final decision has been made and talks could fall through.
A representative for Domtar declined to comment. Representatives for Paper Excellence didn't immediately respond to requests for comment. Domtar, which traces its roots to a British timber company founded in 1848, is one of North America's top producers of so-called freesheet paper, which is used for everything from business memos to copy paper.
Paper Excellence, based in Richmond, British Columbia, manufactures pulp packaging and specialty paper and has eight facilities in Canada, according to its website. The company also owns about a 49% stake in a mill located in Tres Lagoas in Brazil.
Statement from Domtar
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