Canada’s Abitibi-Consolidated and U.S.-based Bowater Inc. announced a merger Monday. The newly-formed AbitibiBowater would be the third largest publicly traded paper and forest products company in North America.
The new company is expected to have pro forma annual revenues of $7.9 billion and will have its headquarters and executive office in Montreal, Quebec. The U.S. regional manufacturing and sales office will be located in Greenville, S.C.
John W. Weaver, president and CEO of Abitibi-Consolidated will become executive chairman of AbitibiBowater and David J. Paterson, Chairman, President and CEO of Bowater will become president and CEO of AbitibiBowater. A 14-member Board of Directors will also be created, with 7 members from each company.
"This is a logical strategic step to address the realities of today's marketplace. A more efficient manufacturing platform will enable us to bring our customers better product quality, new product innovation and improved logistical flexibility,” Paterson said.
The company’s product lines will include newsprint, uncoated and coated mechanical papers, market pulp and wood products. It will also own or operate 32 pulp and paper facilities and 35 wood product facilities mainly in Eastern Canada and the Southeastern U.S.
Pro forma paper production capacity is expected to be 11.3 million tons annually and 3.1 billion board feet of lumber.