Paper Excellence Canada (PEC) has signed an agreement to acquire Canada-based Catalyst Paper for an undisclosed sum.
Catalyst Paper is said to manufacture 1.3 million tonnes of pulp and paper products.
The company’s products include industrial packaging, food service, coated ground-wood, newsprint and directory papers.
As part of the deal, PEC will acquire Catalyst Paper’s three facilities situated in Crofton, Port Alberni and Powell River, as well as Surrey distribution center and headquarters in Richmond of British Columbia.
Catalyst Paper president and CEO Ned Dwyer said: “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.”
Catalyst Paper produces specialty papers, which are FDA-compliant and manufactured with verified chain-of-custody fiber certification.
The company’s Bistro brand products are designed to be used in various food service applications ranging from food wrappers, basket liners, flat or pinch bottom bags to bakery tissue and deli papers
Bistro brand products include Bistro Wax uncoated waxing base paper for wet and dry wax applications, Bistro Bag uncoated paper for flat or pinch bottom bag applications and Bistro Foil uncoated paper for food service applications.
The company supplies its paper products to retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim, and Europe.
Subject to regulatory review and approvals, the deal is expected to be completed in the fourth quarter of this year or an early first quarter of 2019.
Barclays has served as an exclusive financial advisor to Paper Excellence on the deal.
Paper Excellence CEO Brian Baarda said: “Paper Excellence is evolving into a major player within Canada’s forest industry.
“This announcement is a continued step towards Paper Excellence’s long-term growth plan within Canada and the province. With this acquisition, Paper Excellence is clearly demonstrating its commitment to British Columbia”.
Paper Excellence produces NBSK pulp for the paper industry and BCTMP for printing, board, and packaging.
The company, which exports its products to Asia, manufactures products from renewable resources accredited with PEFC or FSC sustainability certifications.