PaperAge Magazine

Paper Excellence Canada to Acquire Catalyst Paper

Catalyst Paper The deal includes Catalyst's three mills located in Crofton, Port Alberni and Powell River, its Surrey distribution centre, and headquarters in Richmond, British Columbia, Canada.

Oct. 10, 2018 - Catalyst Paper Corporation announced on Oct. 9 that Paper Excellence Canada Holdings Corporation and Catalyst have entered into an agreement under which Paper Excellence has agreed to acquire all of the issued and outstanding shares of Catalyst.

Financial terms of the deal were not disclosed.

The deal includes Catalyst's three mills located in Crofton, Port Alberni and Powell River, its Surrey distribution centre, and headquarters in Richmond, British Columbia, Canada.

"When complete, this transaction will benefit all of our stakeholders, including our customers, employees, suppliers, the communities where we operate, and BC's pulp and paper and forest products industries," said Ned Dwyer, Catalyst President and CEO.

With headquarters in British Columbia, Paper Excellence has close to two million tonnes of pulp production capacity through five operating mills in Canada and two mills in France.

“Paper Excellence is evolving into a major player within Canada's forest industry,” said Brian Baarda, CEO of Paper Excellence. “This announcement is a continued step towards Paper Excellence's long-term growth plan within Canada and the province.”

Catalyst Mills

  • The Crofton mill is an integrated pulp and paper mill with two operating paper machines and two pulp machines. The mill has the capacity to produce 302,000 tonnes per year of newsprint and 336,000 tonnes per year of NBSK pulp.
  • The Port Alberni mill has two paper machines and produces directory and lightweight coated paper. The mill has a production capacity of 340,000 tonnes per year of specialty papers.
  • The Powell River mill has two paper machines and produces newsprint and uncoated mechanical specialty papers. The mill has a production capacity of 350,000 tonnes per years of specialty papers.

According to Catalyst, the transaction will be effected by means of a corporate plan of arrangement under Catalyst's governing law and will require approval of the Supreme Court of British Columbia as well as the approval of at least two-thirds of the votes cast by Catalyst shareholders at a special meeting thereof.

The transaction is expected to close by the end of the fourth quarter 2018 or early first quarter 2019.

About Paper Excellence

Paper Excellence Canada manufactures NBSK pulp for the paper industry and BCTMP for printing, board and packaging. PEC's products are exported to Asia. PEC's products are produced from renewable resources which are accredited with PEFC and/or FSC sustainability certifications.

About Catalyst

Catalyst Paper manufactures diverse papers such as coated and uncoated groundwood, newsprint, directory, packaging as well as market pulp. Customers include retailers, publishers, commercial printers and convertors in North America, Latin America, the Pacific Rim and Europe. Catalyst is headquartered in Richmond, British Columbia, Canada.

SOURCE: Catalyst Paper and Paper Excellence