Paper Excellence Canada has agreed to acquire Catalyst Paper Corp, a Richmond, British Columbia-based pulp and paper company.
Terms weren’t released. The acquisition includes Catalyst’s three facilities in Crofton, Port Alberni and Powell River and its Surrey distribution centre.
In a separate release, Catalyst said shareholders owning about 87 percent of its outstanding shares will vote in favour of the deal, which is expected to close no later than Q1 2019.
Catalyst was taken private last year by Oaktree Capital Management, Cyrus Capital Partners and Mudrick Capital Management.
Also based in Richmond, Paper Excellence oversees a group of pulp and paper companies.
Paper Excellence Canada to acquire Catalyst Paper
RICHMOND, BC, Oct. 9, 2018 /CNW/ – Paper Excellence Canada (PEC) is today announcing it has entered into an agreement to acquire Catalyst Paper Corporation, including its three facilities located in Crofton, Port Alberni and Powell River, its Surrey distribution centre and headquarters in Richmond, BC. This agreement is subject to regulatory review and approvals.
Catalyst Paper manufactures 1.3 million tonnes of pulp and paper products. These products include industrial packaging, food service, coated ground-wood, newsprint and directory papers. Customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.
Paper Excellence has evolved from a new entrant as an exporter within the value-added natural resources (pulp) industry to being among one of Canada’s largest pulp producers.
“For months we’ve been working hard to secure the 1,500 jobs and pensions of Catalyst workers in Crofton, Port Alberni, and Powell River. Today’s announcement by Paper Excellence is another welcome vote of confidence in B.C. and most of all – the people who add value to our natural forest resources,” said B.C. Premier John Horgan.
“Paper Excellence is evolving into a major player within Canada’s forest industry”, states Brian Baarda, Paper Excellence Chief Executive Officer. “This announcement is a continued step towards Paper Excellence’s long-term growth plan within Canada and the province. With this acquisition, Paper Excellence is clearly demonstrating its commitment to British Columbia”.
Barclays acted as exclusive financial advisor to Paper Excellence on the transaction.
About Paper Excellence:
Paper Excellence manufactures NBSK Pulp for the paper industry and BCTMP for printing, board and packaging. PEC’s products are exported to Asia. Widely recognized for superior quality, PEC’s products are produced from renewable resources which are accredited with PEFC and/or FSC sustainability certifications.
For further information: Media Contact: Kathy Cloutier, Paper Excellence, Director of Corporate Communications, email@example.com, 902-759-7246