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Tembec announces impending sale of French kraft pulp mills

Tembec announced that its European subsidiary, Tembec SAS, is in advanced negotiations with Paper Excellence B…

Tembec announced that its European subsidiary, Tembec SAS, is in advanced negotiations with Paper Excellence B.V. for the sale of two kraft pulp mills located in Tarascon and Saint-Gaudens, France.
As currently proposed, Paper Excellence B.V. would acquire 100% of the shares of Tembec Saint-Gaudens SAS and Tembec Tarascon SAS, two subsidiaries of Tembec SAS. The total consideration for the proposed transaction would be approximately 100 million Euros (C$137 million) allocated as between shares and assumption of debt, subject to closing working capital adjustments.
Due to the advanced nature of the negotiations, Tembec SAS has initiated the process of consultation with mill employee committees, as required under French law. Tembec SAS expects to finalize the transaction shortly after the consultation process is complete.
Tembec is a large, diversified and integrated forest products company with operations in Canada and France.