Resolute Acquires Full Ownership of Donohue Malbaie

Resolute Forest Products Inc., Montreal, Que., Canada,) this past week announced the closing of a transaction to acquire the 49% equity interest held by The New York Times Co. in Donohue Malbaie Inc. for a cash purchase price in the amount of C$20 million. Resolute already owned 51% of the shares of Donohue Malbaie.

Donohue Malbaie owns and operates a paper machine with an annual production capacity of 224,000 metric tons of newsprint in Clermont, Que., Canada. The Clermont operation, which employs 153 workers, also houses all of the equipment that produces the thermomechanical pulp supplying the machine. With this transaction, Resolute becomes sole owner of the Clermont operation.

"The New York Times Co. has been an outstanding business partner since the late 1960s, and we thank the organization for its support over the years," said Richard Garneau, president and CEO. "The time was right for Resolute to take full ownership of Donohue Malbaie, and today's transaction illustrates the company's confidence in the operation as well as our continued investment in the Province of Quebec."

Jim Follo, EVP and CFO of The New York Times Co., said that "we've relied on the high-quality product produced in the Clermont mill to print The New York Times each day, and we're grateful to the team there. Resolute will remain our primary supplier of newsprint, and we look forward to a continuing relationship."

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 more than 70 countries. The company owns or operates some 40 manufacturing facilities, as well as power generation assets, in the U.S. and Canada. Resolute has third-party certified 100% of its managed woodlands to internationally recognized sustainable forest management standards. Visit Resolute’s website for more information.