Domtar Announces Agreement to Sell Its Dryden Pulp Mill to Quality First

Domtar Corporation, a wholly owned subsidiary of the Paper Excellence Group, and First Quality Enterprises, Inc. announced today (2-28-23) that they have entered into an agreement to sell Domtar’s Dryden pulp mill to First Quality. The transaction is expected to close early in 2023Q3 and is subject to customary closing conditions, including receipt of required regulatory approvals and the closing of the Resolute Forest Products Inc. transaction.

First Quality has told Domtar that it is committed to the Dryden Mill, its employees, and the surrounding community and that First Quality fully intends to continue business operations consistent with past practices.

The sale of the Dryden Mill is a requirement under the consent agreement between Domtar and the Canadian Competition Bureau in connection with its review of Domtar’s planned acquisition of Resolute. The sale is subject to regulatory conditions, including approval by the Commissioner of Competition and clearance under the Scott-Rodino Act.

The Resolute transaction remains on course to close in the first half of 2023, subject to the satisfaction or waiver of the other conditions to the closing of the merger.