US $
MONTREAL, Feb. 3, 2020 /CNW Telbec/ - Resolute Forest
Products Inc. (NYSE: RFP) (TSX: RFP) today announced that, on
February 1, 2020, it completed the
previously disclosed acquisition of Conifex Timber Inc.'s three
sawmills in the U.S. South, pursuant to the terms of the
securities purchase agreement dated December
23, 2019. The total purchase price was $163 million,
plus working capital, which is estimated at $13 million.
The three sawmills, with combined production capacity of
550 million board feet, are located in Cross City (Florida), and Glenwood and El Dorado (Arkansas). The facilities produce
construction-grade dimensional lumber and decking products from
locally-sourced southern yellow pine for distribution within the
United States.
"We are pleased to welcome the new employees to Resolute,"
stated Yves Laflamme, president and chief executive officer.
"The acquisition of the U.S. sawmills is the right move, at the
right time, for Resolute; it will give us immediate scale in an
attractive region, with quality assets in a rich fiber basket,
close to growing end-markets."
This transaction diversifies the company's lumber production:
when operating to capacity, almost 25% of Resolute's production
will be in the U.S. South.
Cautionary Statements Regarding
Forward-Looking Information
Statements in this press release that are not reported financial
results or other historical information of Resolute Forest Products
Inc. and its subsidiaries (collectively, the "company," "we,"
"our," or "us") are "forward-looking statements" within the meaning
of the Private Securities Litigation Reform Act of 1995. They
include, for example, statements relating to the anticipated
synergies and benefits of the acquisition. Forward-looking
statements may be identified by the use of forward-looking
terminology such as the words "should," "would," "could," "will,"
"may," "expect," "believe," "anticipate," "attempt," "project,"
"intend" and other terms with similar meaning indicating possible
future events or potential impact on the company's business or its
shareholders.
The reader is cautioned not to place undue reliance on these
forward-looking statements, which are not guarantees of future
performance. These statements are based on management's current
assumptions, beliefs and expectations, all of which involve a
number of business risks and uncertainties that could cause actual
results to differ materially. Such risks and uncertainties include,
among other things, the risks of not successfully integrating the
acquired business or assets with the company's business or not
realizing some or all of the anticipated synergies and benefits of
the acquisition which could adversely affect the company's results
of operations and cash flows. Additional information regarding
factors that may cause actual results to differ materially from
these forward-looking statements is available in the company's
filings with the SEC, including the risks and uncertainties
identified in Part I, Item 1A – Risk Factors of the company's
Annual Report on Form 10-K for the year ended December 31, 2018.
All forward-looking statements in this press release are
expressly qualified by the cautionary statements set out or
referred to above and in the company's other filings with the U.S.
Securities and Exchange Commission and the Canadian securities
regulatory authorities. The company disclaims any obligation to
publicly update or revise any forward-looking information, whether
as a result of new information, future events or otherwise, except
as required by law.
About Resolute Forest Products
Resolute Forest Products is a global leader in the forest
products industry with a diverse range of products, including
market pulp, tissue, wood products, newsprint and specialty papers,
which are marketed in close to 70 countries. The company owns or
operates some 40 facilities, as well as power generation assets, in
the United States and Canada. Resolute has third-party certified
100% of its managed woodlands to internationally recognized
sustainable forest management standards. The shares of Resolute
Forest Products trade under the stock symbol RFP on both the New
York Stock Exchange and the Toronto Stock Exchange.
Resolute has received regional, North American and global
recognition for its leadership in corporate social responsibility
and sustainable development, as well as for its business practices.
Visit www.resolutefp.com for more information.
View original
content:http://www.prnewswire.com/news-releases/resolute-completes-acquisition-of-three-us-sawmills-300997401.html
SOURCE Resolute Forest Products Inc.