Two cellulose manufacturers recently made an amendment to a previous acquisition arrangement in which Rayonier Advanced Materials Inc. of Jacksonville agreed to purchase Tembec Inc., with both firms’ boards of directors approving the new terms unanimously.
Under the revised terms, the value of shares offered represents a 17 percent increase over the initial worth. Additionally, a premium of 61 percent to the closing price of Tembec shares as of May 24, the last day before the original announcement.
“This transaction advances our growth objective to pursue strategic acquisitions where we can leverage our core competencies to provide significant long-term shareholder return,” Paul Boynton, Rayonier Advanced Materials chairman, president and CEO, said in a press release. “We look forward to working with Tembec’s exceptional team, unions and other stakeholders to realize the abundant opportunities ahead.”
Rayonier Advanced Materials supplies cellulose to manufacturers of cellphones, computer screens, filters and pharmaceutical products from its facilities in Florida and Georgia.
Tembec’s President and CEO James Lopez echoed Rayonier’s message.
“Rayonier Advanced Materials is the ideal partner for us and we are encouraged by their ongoing commitment to our operations and employees in Canada and France and — above all — to the values we share,” Lopez said.
Montreal-based Tembec produces lumber, paper and pulp along with cellulose, practicing sustainable forestry.
“This combination will enable us to sustainably grow our business for the benefit of our customers, employees and communities,” Lopez said. “We are, of course, pleased with the opportunity to deliver even greater value to our shareholders.”