Resolute Announces Asset Purchase Agreement to Sell the Thunder Bay Pulp and Paper Mill

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Resolute Thunder Bay
Resolute Thunder Bay

Leading Ontario Pulp and Paper Operation Joining Atlas’ Global Family of Manufacturing and Distribution Businesses

THUNDER BAY – Business – Resolute Forest Products Inc., a subsidiary of Domtar Corporation and a part of the Paper Excellence Group, today announced that it has entered into an asset purchase agreement to sell its Thunder Bay (Ontario) pulp and paper mill to an affiliate of Atlas Holdings. The transaction, expected to close in the second half of the year, is subject to the satisfaction or waiver of closing conditions, including obtaining required regulatory approvals.

Resolute will continue to operate its sawmills and woodlands operations in Northwestern Ontario. At the closing of the transaction, the parties will enter into certain ancillary agreements, including a long-term woodchip and biomass supply agreement pursuant to which Resolute will continue to provide chips and biomass to the Thunder Bay mill.

“The mill is an exceptional asset,” said Remi G. Lalonde, Resolute’s president and chief executive officer. “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.”

Atlas Holdings (“Atlas”) and Resolute FP Canada Inc. (“Resolute”) announced today the signing of a definitive agreement for an affiliate of Atlas to acquire Resolute’s pulp, newsprint and directory paper mill operations (“Thunder Bay”) in Thunder Bay, Ontario. The transaction is expected to close in the second half of 2023 following customary regulatory approvals.

Thunder Bay is a leading northern bleached softwood kraft and northern bleached hardwood kraft pulp, paper, newsprint and directory producer. Resolute’s intention to sell Thunder Bay was announced by Resolute’s owner, Paper Excellence, in October 2022.

Upon closing the transaction, Thunder Bay will operate as a standalone company and a member of Atlas’ global family of manufacturing and distribution businesses, many of which are leaders in pulp, paper and adjacent industries. Atlas’ first platform company, Forest Resources, was established more than two decades ago to acquire a recycled corrugating paper mill. Since then, Atlas has successfully partnered with experienced Leadership Teams to acquire, strengthen and operate a number of pulp and paper businesses, including several in Canada.

“We are extremely excited about the opportunity at Thunder Bay. Atlas is the ideal owner to take this great operation into its next chapter, as a strong and independent company. As always, we will partner with strong local leadership to strengthen Thunder Bay’s operations, to serve Thunder Bay’s customers in a highly responsive fashion, and to strongly support the local and regional community. We recognize Thunder Bay’s historic and unique position in Ontario and the broader pulp and paper industry,” said Atlas Principal Daniel Merriam.

“Many Atlas businesses are landmark companies in their regions, just as the Thunder Bay mill has been since 1919,” said Atlas Partner Neil Mahajan. “We understand Thunder Bay’s importance as a pillar of the local economy, and we look forward to bringing our deep experience in pulp and paper as we convert the mill into a stable, independent enterprise and build a bright future for Thunder Bay.”

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.

Advisors

BMO Capital Markets is serving as exclusive financial advisor to Resolute, and Stikeman Elliott LLP is serving as its legal advisor.

Cautionary Statements Regarding Forward-Looking Information

Expectations with respect to the closing are forward-looking statements. Actual results could differ materially from those suggested by these statements for a number of reasons, including either party’s failure to satisfy the closing conditions and other factors impacting the paper industry or the mill.

About Resolute Forest Products

Resolute Forest Products is a leading producer of a diverse range of wood, pulp, tissue and paper products, which are marketed in 60 countries. The company operates some 40 facilities, as well as power generation assets, in the United States and Canada and has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. Resolute has received regional, North American and global recognition for its leadership in corporate social responsibility and sustainable development, as well as for its business practices. Headquartered in Montreal (Quebec), the company is a subsidiary of Domtar Corporation and a part of the Paper Excellence Group. To learn more, visit www.resolutefp.com.

About Atlas Holdings

Headquartered in Greenwich, Connecticut and founded in 2002, Atlas and its affiliates own and operate 26 companies, which employ approximately 50,000 associates across more than 300 facilities worldwide. Atlas operates in sectors such as aluminum processing, automotive, building materials, capital equipment, construction services, food manufacturing and distribution, packaging, paper, power generation, printing, pulp, supply chain management and wood products. Atlas’ companies together generate approximately $16 billion in revenues annually.

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