Bowater to Acquire Alliance Forest Products for $1.2B

On April 2, 2001, Bowater Incorporated, the world’s third-largest newsprint group, announced that it had reached an agreement to acquire Alliance Forest Products Inc. of Montreal. The transaction will be effected by an arrangement agreement pursuant to section 192 of the CBCA. The transaction value, including assumed debt, is approximately $1.2 billion. The boards of directors of both Bowater and Alliance have unanimously approved the transaction, which is expected to be completed by June 30, 2001, subject to regulatory approvals and the approval of Alliance’s shareholders.

Fraser Milner Casgrain LLP, through its Toronto and Montreal offices, are acting for Bowater, with a team that includes Jamie Plant, Jeff Barnes, Doug Scott, Michel Brunet, Chris Turney, Louis Clément, Scott Dunlop (corporate and securities), Brian Carr, Chris Steeves (tax), Mary Picard (pensions and benefits), Anneli LeGault (labour/employment), Paul Shantz (environmental), Randy Hughes, Tracey Patel (competition), and David Medina (due diligence). US counsel to Bowater is Carter, Ledyard & Milburn in New York.

The Lavery, de Billy team representing Alliance includes André Laurin, Isabelle Lamarre, Johanne Duchesne, Georges Dubé and Alexandra Lee (corporate and securities), Serge Bourque, Larry Markowitz (competition), Réal Favreau (tax), Hélène Lauzon (environment) and Catherine Maheu (labour/employment), with support from in-house counsel, Martin Longpré. Alliance’s US counsel are Epstein Becker & Green, P.C. in Boston.