Paper Excellence Canada to acquire PE owned Catalyst Paper

Paper Excellence Canada Holdings Corporation has entered into an agreement to acquire all of the issued and outstanding shares of Catalyst Paper Corporation from Oaktree Capital Management, L.P., Mudrick Capital Management, L.P., Cyrus Capital Partners, L.P. and other shareholders. Financial terms were not disclosed.

Richmond, BC based Paper Excellence Canada manufactures NBSK Pulp for the paper industry and BCTMP for printing, board and packaging. PEC’s products are exported to Asia. It was formed by Paper Excellence B.V. from a series of acquisitions of paper mills in BC, Saskatchewan and Nova Scotia.

In January 2017, TSX listed Catalyst Paper completed a recapitalization and privatization transaction with Oaktree Capital, Mudrick Capital, and Cyrus Capital Partners controlling approximately 87% of the outstanding common shares of the company.

Oaktree Capital, Mudrick Capital, and Cyrus Capital Partners have agreed to support the transaction.

The transaction is subject to the 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 special meeting thereof.

The transaction is expected to close by the end of the fourth quarter 2018 or early first quarter 2019.

photo credit: Paper Excellence

News Release

Paper Excellence Canada to acquire Catalyst Paper

October 9, 2018

Paper Excellence Canada to acquire Catalyst Paper

RICHMOND, BC – Paper Excellence Canada (PEC) is today announcing it has entered into an agreement to acquire Catalyst Paper Corporation, including its three facilities located in Crofton, Port Alberni and Powell River, its Surrey distribution centre and headquarters in Richmond, BC. This agreement is subject to regulatory review and approvals.

Catalyst Paper manufactures 1.3 million tonnes of pulp and paper products. These products include industrial packaging, food service, coated ground-wood, newsprint and directory papers. Customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.

Paper Excellence has evolved from a new entrant as an exporter within the value-added natural resources (pulp) industry to being among one of Canada’s largest pulp producers.

“For months we’ve been working hard to secure the 1,500 jobs and pensions of Catalyst workers in Crofton, Port Alberni, and Powell River. Today’s announcement by Paper Excellence is another welcome vote of confidence in B.C. and most of all – the people who add value to our natural forest resources,” said B.C. Premier John Horgan.

“Paper Excellence is evolving into a major player within Canada’s forest industry”, states Brian Baarda, Paper Excellence Chief Executive Officer. “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”.

Barclays acted as exclusive financial advisor to Paper Excellence on the transaction.

About Paper Excellence:

Paper Excellence manufactures NBSK Pulp for the paper industry and BCTMP for printing, board and packaging. PEC’s products are exported to Asia. Widely recognized for superior quality, PEC’s products are produced from renewable resources which are accredited with PEFC and/or FSC sustainability certifications.

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Media Contact:

Kathy Cloutier
Paper Excellence, Director of Corporate Communications
kcloutier@paperexcellence.com
902-759-7246


Ted Liu
Ted Liu, M.Sc. (Mining), MBA (Finance), is the Editor of Private Capital Journal, TechnologyMetals.ca, GoldSilverMetals.ca, and former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA). Ted was the architect of CVCA infobase, and is the architect of sophisticated and advanced CPE Media Private Capital Dealbase. Ted is President of CPE Media Inc., Canada's independent, trusted and unbiased data provider tracking Canadian VC/PE, private capital industry and public market.
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