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Mercer International to take over pulp producer DMI

08.10.2018 − 

With the acquisition of the activities of Daishowa-Marubeni International (DMI), Mercer International is increasing its pulp capacity by 645,000 tons to approximately 2.2m tons per year. According to Mercer, the planned acquisition includes a pulp mill in Peace River/Alberta (475,000 t NBHK/NBSK) and a 50% stake in the Cariboo Pulp and Paper Company's NBSK mill in Quesnel/British Columbia (170,000 t). The acquisition also includes government logging licenses in Alberta of 2.8m m³/year, of which 2.4m m³ is for hardwood and 0.4m m³ is for softwood; the licenses have a term of 20 years.

According to an announcement published on October 3, Mercer reached an agreement with Marubeni Corporation, Nippon Paper Industries and Daishowa North America Corporation to acquire all shares in DMI for a total consideration of US$359.2m, including US$85.7m working capital.

The acquisition is still subject to the usual conditions precedent and the necessary antitrust approval. The transaction is expected to close in the fourth quarter of 2018.

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