On June 30, 2010, EACOM Timber Corporation purchased Forest Products Business from Domtar Corporation. Domtar is the largest integrated manufacturer and marketer of uncoated freesheet paper in North America and the second largest in the world based on production capacity.
The acquisition price was approximately $126.5 million and was funded through a $145 million private placement of subscription receipts. The financing was raised by Cannacord Genuity Ltd. The transaction was announced on March 29, 2010. Domtar received 19 per cent of the proceeds in shares of EACOM resulting in an ownership interest of approximately 11.7 per cent.
The transaction includes five operating sawmills: Timmins, Nairn Centre and Gogama in Ontario, and Val-d'Or and Matagami in Québec; as well as two non-operating sawmills: Ear Falls in Ontario and Ste-Marie in Québec. Also included in the transaction is the Sullivan remanufacturing facility in Québec and Domtar's interests in two investments: Anthony-Domtar Inc. and Elk Lake Planing Mill Limited.
EACOM was advised by Heenan Blaikie LLP with a team consisting of Catherine Wade and Michael Hollinger (M&A and corporate); Marie-Claude Bellemare (forestry and environmental); Normand Quesnel, Stephen Morris and Tony Kiru (real estate); Michelle MacGillivray and Michael Grodinsky (labour and employment); Mark Newton (pension and benefits); Subrata Bhattacharjee and Jon Smithen (competition) and Paul Lalonde (international trade).
Domtar was advised by its Senior Vice President and General Counsel, Zygmunt Jablonski, its Senior Director, Legal Services, Ania Brzezinski, and in-house counsel, Inna Nekhim and by Ogilvy Renault LLP with a team consisting of Francis Legault, Nicolas Labrecque and David Millette (M&A and corporate); Julie Paquette and Louis Roy (real estate); Anne Gallop and Louise Laplante (labour and employment); Martin Rochette (pension and benefits); Denis Gascon and Paul Beaudry (competition) and Derek Chiasson (tax).
Cannacord Genuity was advised by Lang Michener LLP with a team consisting of Thomas Deutsch, Leo Rafffin, Michael Taylor, Jeremy Shelford and Erica Weiss.