Domtar Announces Sale of Dryden Mill
News General news
Domtar Corporation, a part of the Paper Excellence Group, and First Quality Enterprises, Inc. today announced that they have entered into an agreement to sell Domtar’s Dryden pulp mill to First Quality. The Dryden transaction, expected to close early in the third quarter, is subject to customary closing conditions, including receipt of required regulatory approvals and the closing of the Resolute Forest Products Inc. transaction.
First Quality has made clear to Domtar its commitment to the Dryden Mill, its employees and the surrounding community and that First Quality fully intends to continue business operations consistent with past practices.
The sale of the Dryden Mill is a requirement under the consent agreement between Domtar and the Canadian Competition Bureau in connection with its review of Domtar’s planned acquisition of Resolute. The sale is subject to regulatory conditions, including approval by the Commissioner of Competition and clearance under the Hart-Scott-Rodino Act.
The Resolute transaction remains on course to close in the first half of 2023, subject to the satisfaction or waiver of the other conditions to the closing of the merger.
Advisors
BMO Capital Markets is acting as exclusive financial advisor to Domtar, and McCarthy Tétrault LLP, and McMillan LLP are acting as legal advisors.
Wachtell, Lipton, Rosen & Katz, and Osler, Hoskin & Harcourt LLP are acting as legal advisors to First Quality.
