Merger activity increased last week with four new deals announced, three deals completed and one deal that fell apart.
Domtar Corporation (UFS) was founded in 1848 in England and was originally called Boulton Holding Ltd. Domtar is the largest integrated manufacturer and marketer of uncoated paper in North America and the second-largest in the world.
A week ago we added Domtar to our list of potential deals when Paper Excellence announced that it was exploring a deal to acquire the company. Domtar completed the sale of its Personal Care business in the first quarter of 2021. The sale was part of the company’s ongoing effort to strategically optimize its portfolio in order to strengthen its balance sheet, enhance liquidity, and repurchase shares.
On May 11, 2021, Domtar and Paper Excellence entered into a strategic business combination, under which Paper Excellence will acquire Domtar for $55.50 per share in cash or $3 billion, representing a premium of approximately 37% to Domtar’s closing share price on May 3, 2021, the day before the potential deal was announced and a premium of approximately 44% to the 30-day volume-weighted average price as of May 3, 2021.
You can find all the active deals listed below in our Merger Arbitrage Tool (MAT) that automatically updates itself during market hours.