Resolute Forest Products has entered into an asset purchase agreement with an affiliate of Atlas Holdings to sell its Thunder Bay pulp and paper mill. The sale is a part of the agreement applicable to Domtar’s acquisition of Resolute Forest Products.
May 30, 2023
Resolute Forest Products Inc., Domtar’s subsidiary and a part of the Paper Excellence Group, has entered into an asset purchase agreement with an affiliate of Atlas Holdings to sell its Thunder Bay (Ontario) pulp and paper mill. The transaction, subject to the satisfaction or waiver of closing conditions, including obtaining required regulatory approvals, is expected to close in the second half of the year.
Resolute will continue to operate its sawmills and woodlands operations in Northwestern Ontario. Post-transaction, the parties will enter into certain ancillary agreements, including a long-term woodchip and biomass supply agreement, wherein Resolute will continue to provide chips and biomass to the Thunder Bay mill.
Mr. Remi G. Lalonde, Resolute’s President and Chief Executive Officer, commented, “The mill is an exceptional asset. I am confident that the dedicated and talented team in Thunder Bay will have a prosperous future, and I sincerely wish them all the best.”
The sale of the Thunder Bay mill is a requirement under the consent agreement entered into between Domtar Corporation and the Canadian Commissioner of Competition and registered with the Canadian Competition Tribunal in connection with its review of Domtar Corporation’s recent acquisition of Resolute.