February 20, 2020 By PrintAction Staff
Paper mill giant Domtar Corp. is purchasing the assets of Appvion Operations Inc.’s Point of Sale (POS) paper business.
The financial terms of the deal have not been disclosed.
The agreement includes the coater and related equipment located only at the West Carrollton, Ohio, facility as well as a license for all corresponding intellectual property.
“The combination of Domtar’s world-class paper-making capabilities with the West Carrollton coater’s significant scale will make a globally competitive point of sale paper business and provide new options for our future growth,” Domtar’s president and CEO John Williams said in a Feb. 17 statement.
“Appvion and Domtar have enjoyed a strong mutually beneficial relationship over the last several years as part of our long term supply agreement,” Graeme Hodson, president of Appvion’s Paper division, said in the statement. “The West Carrollton asset sale builds on that relationship and provides an opportunity for our POS business employees to become a part of a large integrated pulp and paper producer with the capability to leverage the coating asset to its maximum potential. Appvion will work closely with Domtar to enable a smooth transition of the business”.
The transaction is expected to close in the second quarter of 2020.
Domtar is headquartered in Fort Mill, S.C.
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