Resolute Forest Products is being sold.
The BC-based Paper Excellence Group says it has entered into an agreement to acquire Resolute.
The deal is worth an estimated $2.7 billion U.S.
Under the agreement, Resolute will continue to operate its mills under its name but will become a subsidiary under Domtar, that Paper Excellence acquired last year.
Resolute operates a pulp and paper mill in Thunder Bay and sawmills in Thunder Bay, Ignace and Sapawe. Domtar has operations in Dryden.
There are no changes expected to the management team, which will remain at Resolute’s headquarters in Montreal.
The deal still needs to be signed off by shareholders, with a vote planned for this fall.
