The Company reported an operating loss of $27.6 million for the third quarter of 2020, compared to an operating loss of $6.3 million reported for the second quarter of 2020. After adjusting for a $3.0 million recovery in its inventory write-down provision, the Company’s operating loss was $30.6 million for the third quarter of 2020, $32.5 million unfavourable compared to similarly adjusted results for the second quarter of 2020. The Company’s operating results for the third quarter of 2020 reflected weak global pulp market conditions as well as significant fibre-related and previously deferred scheduled maintenance downtime, stemming from the ongoing impact of the coronavirus (“COVID-19”) outbreak, combined with a 3 cent, or 4%, stronger Canadian dollar.
The Paper Excellence Group, a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers, today announced the successful closing of its previously-announced acquisition of Domtar (NYSE: UFS) (TSX: UFS), a leading provider of fiber-based products. The acquisition further establishes Paper Excellence Group as an industry leader, significantly broadening its global reach and expanding its product range to include airlaid nonwovens and containerboard, in addition to significantly increased pulp and paper production.
Domtar will operate as a stand-alone business entity within the Paper Excellence Group, with Domtar’s current CEO and management team remaining in place. There are no further changes to operating locations, business plans, or Domtar’s employee base at this time.
“Today marks a major milestone in the growth of the Paper Excellence Group,” said Joe Ragan, Global Chief Financial Officer of Paper Excellence. “We are excited to welcome Domtar and its impressive team to the Paper Excellence family. Under John Williams and Domtar’s capable management, we look forward to Domtar’s continued success across its manufacturing network in the US and Canada.”
“As part of the Paper Excellence Group, the future is bright for Domtar,” said John Williams, President and CEO of Domtar. “We will continue to earn the right to be the supplier of choice to our customers with sustainable paper, pulp and packaging products.”
Under terms of the agreement, Domtar stockholders received USD$55.50 for each share of Domtar common stock. Domtar common stock will no longer be listed for trading on the New York Stock Exchange or the Toronto Stock Exchange.