Catalyst Paper Corporation (Richmond, British Columbia) has announced that Paper Excellence Canada Holdings Corporation (Paper Excellence, also located in Richmond, BC) and Catalyst have entered into an agreement under which Paper Excellence has agreed to acquire all of the issued and outstanding shares of Catalyst. Paper Excellence processes almost two million tons of pulp yearly through five mills in Canada and two mills in France. “When complete, this transaction will benefit all of our stakeholders – including our customers, employees, suppliers, the communities where we operate, and BC’s pulp and paper and forest products industries,” said Ned Dwyer, Catalyst President and CEO.
The transaction will conclude by means of a corporate plan of arrangement under Catalyst’s governing law, and will require approval of the Supreme Court of British Columbia as well as the approval of at least two-thirds of the votes cast by Catalyst shareholders at a future meeting. The transaction is also subject to other customary closing conditions.
Shareholders holding approximately 87% of the outstanding common shares of Catalyst have entered into voting and support agreements and are expected to vote in favour of the transaction. Houlihan Lokey is acting as exclusive financial advisor and investment banker for Catalyst in the transaction. Stikeman Elliott is acting as legal advisor to Catalyst.