Rayonier Advanced Materials has acquired Canadian paper company Tembec for $807m to expand its business into packaging and forest products.
The acquisition resulted in the creation of a global company providing high purity cellulose, packaging, paper, pulp and forest products.
Under the terms of the deal signed in May 2017, Tembec shareholders will each receive either C$4.05 in cash or 0.2302 of a share of Rayonier Advanced Materials common stock for each share held.
The combined company, which will be operated under the name Rayonier Advanced Materials, will offer enhanced new product development capabilities as well as a broader and more versatile asset base.
Rayonier Advanced Materials chairman, president and CEO Paul Boynton said: “This acquisition advances our strategic growth objectives and provides an accretive and attractive value proposition for our shareholders by more than doubling our revenues, diversifying our product offering in high purity cellulose and allowing us to expand into new adjacent businesses.
“Rayonier Advanced Materials and Tembec are not only a good strategic fit, but we are also an excellent cultural fit. We are excited to welcome the Tembec employees to Rayonier Advanced Materials as we continue to execute on our four strategic pillars of growth.”
Rayonier Advanced Materials is engaged in manufacturing forest products, including lumber, paper, packaging and high purity cellulose.
Employing approximately 4,200 people, the firm has manufacturing facilities in the US, Canada and France.
