Rayonier Advanced Materials announced that the holders of record of its common shares have approved the resolution authorizing acquisition of all outstanding common shares of Tembec. The Arrangement Resolution was approved by 95.04% of the votes cast by Tembec Shareholders at the special meeting held on July 27, 2017.
The completion of the transaction remains subject to approval by the Québec Superior Court at a final hearing, which is expected to take place on August 7, 2017. In addition to court approval, the Transaction remains subject to other closing conditions, including receipt of regulatory approvals. It is expected that the Transaction will be completed in the fourth quarter of 2017.
At the beginning of July 2017 Tembec obtained an interim order from the Superior Court of Québec authorizing the holding of a special meeting of the holders of common shares of Tembec. On July 13, 2017 the companies received notification of clearance from Germany’s Federal Cartel Office. Recently, Rayonier Advanced Materials increased its offer for Tembec.
In 1Q2017 Rayonier Advanced Materials reported 7.8% decrease of net sales and 11.1% decrease of pro-forma EBITDA. Tembec for the same period decreased EBITDA margin to 9.3%.
The company is a manufacturer of forest products – lumber, pulp, paper and specialty cellulose. Its core operations are located in Canada and France. Annual sales total approximately CAD 1.5 billion. Tembec has around 3,000 employees.
About Rayonier Advanced Materials:
The company is the leading global supplier of high-purity, cellulose specialties natural polymers for the chemical industry. It engineers natural polymeric chemical chains to create dozens of customized high-purity performance fibers at its plants in Florida and Georgia. The company’s facilities can produce up to 675,000 metric tons of cellulose specialties products annually for use in a wide range of industrial and consumer products such as filters, cosmetics and pharmaceuticals. Upon completion of the previously announced strategic realignment of assets in Jesup, the company’s facilities will have the capacity to produce approximately 485,000 tons of cellulose specialties and approximately 245,000 tons of commodity products.