KINGSPORT, Tenn. (WJHL) – Domtar will be acquired by a paper manufacturing company in a deal representing three billion dollars.

According to a release from Domtar’s newsroom, Paper Excellence and Domtar entered an agreement which resulted in all of Domtar’s shares of common stock. They were purchased at a rate of $55.50 per share.

“The all-cash transaction represents an enterprise value of approximately $3.0 billion,” the release states.

Domtar operations will continue “as a stand-alone business entity,” according to the release. The Domtar management team will continue to lead the company’s operations, and all corporate and production locations are expected to be retained.

Based on the release, Domtar’s Kingsport mill appears likely to continue operations as it had prior to the acquisition.

“We are excited to add Domtar and its employees to the Paper Excellence global family. This marks a major step in our global strategy of identifying well-positioned assets and positioning them for growth. Domtar is a natural fit for our culture of operational excellence. We are enthusiastic about entering the American market as we continually improve Paper Excellence’s ability to serve its expanding blue-chip customer base.”

Joe Ragan, Global Chief Financial Officer of Paper Excellence

The release states that the agreement was unanimously approved by the Domtar Board of Directors and is expected to close in the second half of 2021. The closing of the deal is dependent on Domtar shareholder approval and other factors.

To read the entire release about Paper Excellence’s acquisition of Domtar, click here.