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PRINTING PAPERS: DOMTAR BUYS RIS PAPER

MONTREAL, QC — Domtar Inc. has signed an agreement to acquire Florence, KY-based Ris Paper Company Inc., one of the largest independent merchants of commercial printing and business papers in the Uni…

MONTREAL, QC — Domtar Inc. has signed an agreement to acquire Florence, KY-based Ris Paper Company Inc., one of the largest independent merchants of commercial printing and business papers in the United States. The total value of the transaction is US$90 million, which includes assumption of debt, issuance of Domtar common shares and payment in cash. The management of Ris will continue to lead the company. Raymond Royer, president and chief executive officer of Domtar, said the acquisition fits perfectly with the company’s strategy of strengthening access to the US market and increasing shareholder value. “It will contribute to increasing our sales to over $4 billion and assist us in achieving our objective of providing shareholders with a return on equity of 15% or more over a business cycle.” The transaction, which is subject to regulatory approval, is expected to close by the end of July 2000. Ris operates 19 distribution branches in the US, has 680 employees and racked up sales of about US$600 million in 1999.