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May 25 (Reuters) - Rayonier Advanced Materials RYAM.N said on Thursday it would buy Canada's Tembec Inc TMB.TO for $807 million including debt to expand its business into packaging and forest products.
Tembec shareholders will get C$4.05 ($3.02) in cash, or 0.2302 of a Rayonier share, for every Tembec share they own, the companies said. offer price is at a premium of 37.3 percent to Tembec's Wednesday close. The deal includes $487 million in debt.
The deal comes at a time when Canada is resisting a move by the United States to impose tariffs on Canadian lumber imports.
Rayonier, which supplies cellulose commonly found in cellphones, computer screens, filters and pharmaceuticals, said it would finance the cash portion of the deal with cash in hand and debt.
BofA Merrill Lynch is Rayonier's financial adviser and Wachtell, Lipton, Rosen & Katz, McCarthy Tétrault LLP and Hogan Lovells is its legal adviser.
Scotia Capital and National Bank Financial is Tembec's financial adviser and Stikeman Elliott LLP, Cahill Gordon & Reindel LLP, Dechert LLP and Slaughter and May is its legal adviser.
($1 = 1.3428 Canadian dollars)