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Resolute and Paper Excellence Group to sell Thunder Bay mill

The Paper Excellence Group and Resolute Forest Products plan to sell Resolute’s Thunder Bay pulp and paper mill. On July 6, the Paper Excellence Group, through its wholly-owned subsidiary Domtar, entered into an agreement with Resolute to acquire all of the outstanding common shares of Resolute stock.

The Thunder Bay mill sale will further facilitate the regulatory review process.

“This is a very hard thing to do, but we believe it is necessary in order to accelerate our strategic combination with the Paper Excellence Group,” said Remi G. Lalonde, Resolute’s president and chief executive officer, in a press statement. “The mill is an exceptional asset. I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future with any company fortunate enough to have them as part of their organization.”

The announcement demonstrates the Paper Excellence Group’s commitment to the timely completion of the acquisition of Resolute, explained Patrick Loulou, vice-chair and chief strategy officer of the group.

The companies noted in a statement that any sale of the Thunder Bay pulp and paper mill will be contingent upon the closing of the announced acquisition of Resolute by Domtar, and to applicable regulatory approvals. The companies expect the acquisition to close in the first of 2023, following stockholder and regulatory approvals and satisfaction of other customary closing conditions, the receipt of which remains outstanding.