An aerial view of the Powell River mill. Image sourced from Catalyst Paper.
POWELL RIVER, B.C. – Paper Excellence Canada Holdings Corporation is one step closer to acquiring Catalyst Paper Corporation, which includes Powell River’s paper mill.
According to a company release, Paper Excellence “took has taken a significant step forward” on the road to acquiring Catalyst Paper Corporation.
On Feb. 7, the Canadian Competition Bureau issued a no-action letter in respect of Paper Excellence’s previously announced agreement to acquire Catalyst Paper.
Catalyst and Paper Excellence can now move forward with preparations to complete the transaction, subject to the satisfaction or waiver of remaining customary closing conditions.
The transaction involves the purchase of all of the shares of Catalyst, which owns mills in Crofton, Port Alberni and Powell River, a distribution centre in Surrey, and headquarters in Richmond.
“This acquisition demonstrates Paper Excellence’s continuing deep commitment to the province of British Columbia,” stated Paper Excellence CEO Brian Baarda, in a release.
“Once finalized, this acquisition confirms Paper Excellence’s position as a key player within Canada’s forest industry and will benefit all of the stakeholders involved, including our employees, suppliers, customers, the communities where we operate, as well as the pulp and forest products industries.”
Barclays acted as exclusive financial advisor to Paper Excellence on the transaction.
Paper Excellence is a B.C.-headquartered company with close to two million tonnes of pulp production capacity through five operating mills in Canada and two mills in France.
Paper Excellence manufactures NBSK Pulp for the paper and tissue industry, and BCTMP for printing, board and packaging, for export to the Asian market.
Catalyst manufactures 1.3 million tonnes of pulp and paper products. These products include industrial packaging, food service, coated ground-wood, newsprint and directory papers.
Paper Excellence has evolved from a new entrant in the value-added natural resources (pulp) industry less than a decade ago to being among one of Canada’s larger pulp producers.