Kruger enters into a definitive agreement for the acquisition of the Kamloops Pulp Mill owned by Domtar inc.

May 12, 2022
News article Press release Kruger Inc. Specialty Papers

Montréal, Québec, May 12, 2022  – Kruger today announced that its affiliate Kruger Specialty Papers Holding L.P. entered into a definitive share purchase agreement pursuant to which one of its wholly-owned subsidiaries will purchase all the issued and outstanding shares in the capital of DKP Pulp ULC, a legal entity wholly-owned by Domtar Inc. that will, at the time of closing, own and operate the Kamloops Mill located at 2005 Mission Flats Road, Kamloops, British Columbia. The Kamloops Mill produces high quality Northern Bleached Softwood Kraft pulp and unbleached softwood Kraft for customers in North America and Asia.

“We’re very excited about the opportunities that will arise from this acquisition, not only for Kruger but also for the Kamloops Mill, B.C. wood fibre suppliers and the local community,” said François D’Amours, Executive Vice President and Chief Operating Officer for Kruger Inc., Kruger Specialty Papers’ parent company. “There is a natural fit between Kruger and the Kamloops Mill, which has an impressive track record in terms of performance, sustainability, health and safety and employee engagement. Kruger has always maintained excellent relationships with its employees, customers, suppliers and communities and will make every effort to ensure a smooth and efficient transition, and to continue and strengthen these relationships.”

Closing of the transaction contemplated by the Purchase Agreement is expected to occur in the second quarter of 2022 and is subject to customary conditions, including the approval of the Commissioner of Competition. The Paper Excellence Group, in the context of its acquisition of Domtar Corporation in November 2021, had agreed with the Commissioner to sell Domtar’s pulp mill in Kamloops, British Columbia.

This acquisition will enable Kruger to secure the supply of high-quality pulp for some of its Québec paper mills. As a reminder, the Company, which has 2,700 employees in Québec, is investing about $1 billion in Sherbrooke, Québec, for the construction of two state-of-the-art tissue plants.

Also, with this acquisition, Kruger will strengthen its presence in British Columbia as a major employer and provider of essential products. Taking into account its existing operations, namely the Kruger Products tissue plant, in New Westminster, and Kruger Energy’s Zeballos Lake Hydro Plant, the Company will have nearly 700 employees in B.C.

Scotiabank is acting as exclusive financial advisor to Kruger in the context of this acquisition with McCarthy Tétrault LLP acting as legal advisors.


About Kruger

Founded in Canada in 1904, Kruger Inc. is a major provider of tissue products; 100% recycled containerboard; corrugated packaging; publication papers; specialty papers; renewable energy; cellulosic biomaterials; and wines and spirits. The Company is also a leader in paper and paperboard recycling in North America. A privately held family company, Kruger Inc. has 5,500 employees and its facilities are located in Québec, Ontario, British Columbia, and Newfoundland and Labrador, as well as in the States of Tennessee, Maine, New York, Virginia, Kentucky and Rhode Island.




Jean Majeau
Senior Vice President, Corporate Affairs and Communications
(514) 343-3213