M&A · Industrials · Paper Mills
Karta Halten B.V. to acquire Domtar Corp
Announced May 10, 2021 · Closed Nov 30, 2021
Deal value$2.79BEV $2.62B
Premium37.0%To unaffected price
EV / Adj. EBITDA—0.8x EV / Revenue
ConsiderationAll cash$55.50 per share
Transaction
- Acquirer
- Karta Halten B.V.
- Target
- Domtar Corp
- Buyer type
- Strategic
- Offer price per share
- $55.50
- Enterprise value
- $2.62B
- Status
- Closed Nov 30, 2021
Deal protections
- Break fee (target pays)
- $82.7M · 3.0%
- Reverse fee (buyer pays)
- $171M · 6.1%
- Go-shop
- No-shop
- Financing
- Committed · Barclays, Credit Suisse, Morgan Stanley
Advisors
- To the acquirer
- Not disclosed
- To the target
- Morgan Stanley
- Morgan Stanley fee
- $11.1M
Sector context · Industrials
- Comparable deals
- 23 in the prior 24 months
- Premium
- 37.0% vs. 24.0% sector median
- EV / Adj. EBITDA
- Sector median 10.4x
- Break fee
- 3.0% vs. 2.4% sector median
Timeline
- AnnouncedMay 10, 2021
- Proxy filedJun 9, 2021
- Definitive proxyJun 29, 2021
- Shareholder voteJul 29, 2021
- ClosedNov 30, 2021
Valuation · fairness opinions
Discounted cash flow$52.00$65.00
Discounted cash flow$7.00$12.50
Discounted cash flow$44.75$52.50
Future share price$45.75$56.25
Future share price$48.00$58.00
Offer $55.50
Implied value per Domtar Corp share by analysis, from Morgan Stanley.