US’ Domtar, a part of the Paper Excellence group, and First Quality, have entered into an agreement to sell Domtar’s Dryden pulp mill to First Quality. The Dryden transaction, to close in the third quarter, is subject to customary closing conditions, including receipt of regulatory approvals and the closing of the Resolute Forest Products transaction.
First Quality has made clear to Domtar its commitment to the Dryden Mill, its employees and the surrounding community and that First Quality fully intends to continue business operations consistent with past practices, Domtar said in a media statement.
The sale of the Dryden Mill is a requirement under the consent agreement between Domtar and the Canadian Competition Bureau in connection with its review of Domtar’s planned acquisition of Resolute. The sale is subject to regulatory conditions, including approval by the Commissioner of Competition and clearance under the Hart-Scott-Rodino Act. The Resolute transaction remains on course to close in the first half of 2023, subject to the satisfaction or waiver of the other conditions to the closing of the merger.
BMO Capital Markets is acting as exclusive financial advisor to Domtar, and McCarthy Tétrault, and McMillan are acting as legal advisors. Wachtell, Lipton, Rosen & Katz, and Osler, Hoskin & Harcourt are acting as legal advisors to First Quality.