By: The Working Forest Staff
Catalyst Paper Corporation has announced that Paper Excellence Canada Holdings Corporation and Catalyst have entered into an agreement under which Paper Excellence has agreed to acquire all of the issued and outstanding shares of the Company.
Paper Excellence is a BC-headquartered company with close to two million tonnes of pulp production capacity through five operating 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 is expected to close by the end of the fourth quarter of 2018 or early first quarter of 2019 and is subject to the satisfaction of other customary closing conditions.
Catalyst employs about 1,500 forestry workers, including about 570 at the Crofton mill, as well as at its other two mills in Port Alberni and Powell River. Catalyst also generates more than $2 billion in annual economic activity in B.C.
The purchase of Catalyst follows on the heels of regulatory changes made by the provincial government in July to protect the pensions of Catalyst retirees and workers in the event that only part of the company was sold.
“Keeping these operations open and jobs in place show what British Columbians can achieve when we come together and put workers, families, and communities first,” said Premier John Horgan. “This purchase by Paper Excellence Canada is another major vote of confidence in our province and people.