RTTNews | May 11, 2021 08:55AM EDT

08:54 Tuesday, May 11, 2021 (RTTNews.com) - Paper Excellence group of companies, a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers, and Domtar (UFS, UFS.TO) announced Tuesday that they have entered into a strategic business combination under which the Paper Excellence will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 per share, in cash.

The purchase price represents a premium of approximately 37% to Domtar's closing share price on May 3, 2021, the last trading day prior to the media reports regarding the potential business combination. The all-cash transaction represents an enterprise value of approximately $3.0 billion.

After the transaction closes, Paper Excellence intends to continue the operations of Domtar as a stand-alone business entity. As such, Domtar will continue to be led by its management team and Paper Excellence plans to retain its corporate and production locations.

The agreement has been unanimously approved by the Domtar Board of Directors. The transaction is expected to close in the second half of 2021, subject to Domtar shareholder approval, receipt of the required regulatory approvals and other customary closing conditions.

Read the original article on RTTNews ( https://www.rttnews.com/3193797/paper-excellence-to-acquire-domtar-in-all-cash-deal-valued-at-3-bln-quick-facts.aspx)

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