Paper Excellence has agreed to acquire rival Domtar in a $3B stock deal—plans to operate Domtar as a stand-alone business. In other Business news: record lumber prices prompt stories on the rising cost of new homes, soaring ETF stocks, frustrated home builders, and increased lumber thefts.
In Forestry/Climate news: the White House creates a new panel to raise public trust in science; Ontario seeks to grow its biomass industry; and the European Commission is forced to align its biomass policy with the Green Deal’s do-no-harm principal. Meanwhile: the NRDC takes aim at SFI certification; and wildfires make their debut in Alberta; Manitoba and Arizona.
Finally, Finish-based Stora Enso will supply pulp for paper whisky bottles.
Kelly McCloskey, Tree Frog Editor
Paper Excellence, a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers will acquire all of the issued and outstanding shares of Domtar for $55.50 per share, in cash. The purchase price represents a premium of ~37% to closing share price on May 3, 2021 and a premium of ~44% to the 30-day volume-weighted average price as of May 3, 2021. Upon closing the transaction in the second half of 2021, Paper Excellence intends to continue the operations of Domtar as a stand-alone business entity. “This agreement enables our shareholders to realize certain and immediate cash value at a significant premium for their shares,” said John D. Williams, President and Chief Executive Officer of Domtar. “This transaction validates our long-term strategic plan for our leading paper and pulp businesses, and for our continued expansion into packaging.”
Richmond, British Columbia and Fort Mill, South Carolina – Paper Excellence, a global diversified manufacturer of pulp and specialty, printing, writing, and packaging papers, and Domtar, a leading provider of fiber-based products, today announced that they have entered into a strategic business combination under which the Paper Excellence group of companies will acquire all of the issued and outstanding shares of Domtar common stock for $55.50 per share, in cash. The purchase price represents a premium of approximately 37% to Domtar’s closing share price on May 3, 2021… The all-cash transaction represents an enterprise value of approximately $3.0 billion. After the transaction closes, Paper Excellence intends to continue the operations of Domtar as a stand-alone business entity. As such, Domtar will continue to be led by its management team and Paper Excellence plans to retain its corporate and production locations. 
A U.S. lumber shortage has caused prices to more than triple within the last year and to add thousands to the overall costs of new home construction in Southern Nevada. Across the U.S., the average price for a single home shot up by $35,872… New single-family homes, on average, can cost $25,000 more in the valley, said Nat Hodgson, CEO of the Southern Nevada Home Builders Association …The lumber frenzy is just the latest example of how the pandemic is shining a spotlight on a fragile timber supply chain. Sawmills are facing difficulty meeting the increase in demand while shipping and trucking delays have added to costs, which are passed to homebuyers. …“First of all, let’s release NAFTA on the Canadian lumber because it’s hard enough,” said Hodgson. “We’re asking the Biden administration to please meet with the lumber association and talk with them because this is just out of control. There’s nothing we can do.”
SOUTH KOREA — A 1-hour documentary aired on Korea’s most popular cable network JTBC on April 17 was not only informative but also inspirational as it alleviated public concerns and created favourable perceptions on tall wood construction. Entitled “Revolution of Wood”, the program depicted the coming era of mass timber as a step change soon to enhance Korea’s cityscapes. Tall wood building projects from Europe, North America, Japan and Korea were featured including Brock Commons andHan Green, the tallest modern timber building in South Korea. The program addressed public misperceptions that the more wood is consumed, the greater deforestation will be. Principles of sustainable forest management and wood’s inherent carbon and environmental benefits were highlighted.
Thanks to Mr. Glen Ridgway for his letter regarding significant revenue losses due to a ‘forestry pause’ in North Cowichan. I have been a career logger and perhaps contrary to … recent forest conflicts, I as most loggers do love trees. I have made a living for 42 years … in forestry. …Forests are complex systems. So is the preservation, farming and management of them. I am most concerned when I read or see the lies being promoted, to justify various NGOs’ agendas. …as an educated democracy we are called to base our decisions and actions on scientific facts and social needs. …Look at other countries in the world that do not have our financial strength and democracy. …Yes we must have our schools, roads and hospitals. They come at a cost. I assert a healthy balance can be found, one in which our society and environment thrive. All or none is not a viable solution.
The recent narrative playing out in the media is a familiar one: jobs vs. forests and a “war in the woods.” And yet, no one is saying forestry jobs aren’t important. No one wants the last giant cedar to fall. What’s also familiar is a B.C. NDP government once again struggling to implement the recommendations of another independent review of our old growth management. …Roughly 20 years ago, I spent my summer exploring west coast ancient forests as a marbled murrelet researcher. Around the same time, the B.C. government wrestled with implementing the recommendations of the 1992 Old Growth Strategy for B.C., which it never did in full. Had the government done so then, it is likely history would not be repeating itself. What’s different now is that we don’t have another 20 years to talk and log. …Will the B.C. NDP rise to the challenge and implement the recommendations that conserve high productivity ancient forests?
PRESCOTT, Ariz. — A raging wildfire on Monday continued to push toward the town of Crown King south of the Prescott National Forest. It’s one of four wildfires currently burning around the state. Yavapai County Sheriff’s officials said Sunday’s evacuation orders remained in effect for Minnehaha, Fort Misery and Horsethief Basin with an evacuation shelter now open at Mayer High School. Crown King residents have been advised to begin preparing in the event an evacuation order is issued. Authorities said the wildfire began on Saturday and was about 20 miles northeast of Wickenburg and eight miles southwest of Crown King. The fire, under investigation but believed to be human-caused, was at 5.4 square miles (1,398 hectares) Monday with no containment.