Montreal-based Domtar has signed an agreement to acquire Attends Healthcare, manufacturer and supplier of incontinence products for US$315 million. This purchase moves Domtar into a new, growing market space which employs its paper and pulp products.
“This is a good transaction that allows us to take measured steps into the consumer products market in a product area where high single-digit global growth is expected,” said John D. Williams, President and Chief Executive Officer of Domtar. “We believe there is the potential to double Attends’ earnings within five years and we are committed to unleashing the great organic growth potential. With this acquisition, we will consume internally some of our high quality Lighthouse fluff pulp produced in our nearby Plymouth, North Carolina mill. Domtar will continue to look for innovative ways to build growing businesses based on sustainable wood fiber.”
Attends currently operates a 770,000-square-foot facility in North Carolina with nine production lines producing 170 SKUs of products. Attends has approximately 330 employees, annual sales of approximately US$200 million. Michael Fagan, current President and CEO of Attends, will stay on to manage the operations.
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