A friendly takeover offer for Tembec, which has several business units and a corporate office in Temiscaming, Quebec.

The offer from Rayonier Advanced Materials of Jacksonville, Florida values the Quebec-based lumber, paper and pulp producer at 807-million dollars U-S, including $487-million dollars U-S in debt.

A release says Rayonier will continue all Tembec operations and maintain a strong presence in Québec, Ontario, and France.

The Canadian headquarters will remain in Montreal.

Rayonier Advanced Materials also confirms a commitment to previously announced investment plans for Québec and Ontario

The Transaction has been unanimously approved by each company’s Board of Directors.

James Lopez, President and Chief Executive Officer of Tembec, said, “Rayonier Advanced Materials is the ideal partner for us, given the complementary nature of our products, expertise, and resources. They are committed to our operations and employees in Canada and France and—above all—to the values we share. This combination will enable us to sustainably grow our business for the benefit of our customers, employees and communities. We are pleased that our shareholders will be able to participate in the company’s future success through an ongoing equity ownership.”

On top of Tembec shareholder and court approvals, the transaction is also subject to other conditions and receipt of other approvals, including receipt of regulatory approvals.

Subject to obtaining the required approvals, the transaction is expected to be completed in the second half of 2017.

Filed under: tembec, temiscaming-quebec