Domtar closes transaction with Weyerhaeuser creating North American leader in fine paper
Press release from the issuing company
MONTREAL, March 7 -- Domtar Inc. announced today the completion of the previously announced transaction to combine with Weyerhaeuser Company's Fine Paper business and related assets, creating Domtar Corporation. Domtar Corporation is the largest manufacturer and marketer of uncoated freesheet paper and a leading manufacturer of market pulp in North America. The Company's Head Office is located in Montreal, Quebec and its Operations Center is in Fort Mill, South Carolina.
"With a strong team of nearly 14,000 employees dedicated to creating value for customers and shareholders, a world-class manufacturing capability and a solid financial position, Domtar becomes the North American leader in the fine paper business," said Raymond Royer, President and Chief Executive Officer of Domtar Corporation. "The combination of knowledge and expertise in the design, manufacturing, marketing and distribution of fine paper gives the Company, which will benefit from its efficient assets located across the United States and Canada, clear competitive advantages in the breadth and quality of products and services we offer. We will provide long-term value to our shareholders, customers and employees, within an industry in rapid consolidation."
Marvin Cooper, Executive Vice-President and Chief Operating Officer, added: "Domtar is built on a solid foundation of rigorous leadership, established brands and recognized service solutions. We will focus our efforts on meeting the needs of customers and ensuring a quick and seamless transition to the new organization. Also, with an experienced management team with proven integration expertise, we will review all our operations to determine how best to execute the synergies resulting from the transaction."
Commencing today, Domtar Corporation common stock will be traded on the New York Stock Exchange and the Toronto Stock Exchange under the ticker symbol "UFS". Also, exchangeable shares of Domtar (Canada) Paper Inc. will be traded on the Toronto Stock Exchange under the ticker symbol "UFX". As a result of the transaction, the common shares of Domtar Inc. traded under the ticker symbol "DTC" have been delisted from both exchanges while preferred shares of Domtar Inc. will continue to be traded on the Toronto Stock Exchange.
The new company
The backbone of the new company consists of six highly efficient world-class uncoated freesheet mills that provide two-thirds of its nearly five million tons of annual capacity. These mills, combined with a solid mix of specialty facilities, make the new company one of the most efficient and cost-competitive paper companies in North America. The Company has broad North American reach and a wide range of well-known business and commercial printing paper brands. With its access to volume, depth of product offerings, and service through a wide geographic footprint, the Company is in a position to meet the needs of large and small customers alike throughout the United States and Canada. It will maintain environmental leadership, notably by expanding its environmentally and socially responsible papers such as the Domtar EarthChoice product line.
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