Kruger announced that its affiliate Kruger Specialty Papers Holding L.P. entered into a definitive share purchase agreement pursuant to which one of its wholly-owned subsidiaries will purchase all the issued and outstanding shares in the capital of DKP Pulp ULC, a legal entity wholly-owned by Domtar Inc. that will, at the time of closing, own and operate the Kamloops Mill in British Columbia, Canada.

Wood Pulp

Kruger to acquire Kamloops pulp mill from Domtar

Kruger to acquire Kamloops pulp mill from Domtar

Image: Kamloops Mill

Kruger announced that its affiliate Kruger Specialty Papers Holding L.P. entered into a definitive share purchase agreement pursuant to which one of its wholly-owned subsidiaries will purchase all the issued and outstanding shares in the capital of DKP Pulp ULC, a legal entity wholly-owned by Domtar Inc. that will, at the time of closing, own and operate the Kamloops Mill in British Columbia, Canada. The Kamloops Mill produces high quality Northern Bleached Softwood Kraft pulp and unbleached softwood Kraft for customers in North America and Asia.

Closing of the transaction contemplated by the Purchase Agreement is expected to occur in the 2Q 2022 and is subject to customary conditions, including the approval of the Commissioner of Competition. The Paper Excellence Group, in the context of its acquisition of Domtar Corporation in November 2021, had agreed with the Commissioner to sell Domtar's pulp mill in Kamloops, British Columbia.

This acquisition will enable Kruger to secure the supply of high-quality pulp for some of its Québec paper mills. As a reminder, the Company, which has 2,700 employees in Québec, is investing about $1 billion in Sherbrooke, Québec, for the construction of two state-of-the-art tissue plants.

Also, with this acquisition, Kruger will strengthen its presence in British Columbia as a major employer and provider of essential products. Taking into account its existing operations, namely the Kruger Products tissue plant, in New Westminster, and Kruger Energy's Zeballos Lake Hydro Plant, the Company will have nearly 700 employees in B.C.

Founded in Canada in 1904, Kruger Inc. is a major provider of tissue products; 100% recycled containerboard; corrugated packaging; publication papers; specialty papers; renewable energy; cellulosic biomaterials; and wines and spirits.