(RTTNews) – Domtar Corp. (UFS, UFS.TO) said Friday it has agreed to market its Individual Care business enterprise to personal equity agency American Industrial Partners or AIP for $920 million. Domtar is a company of fiber-primarily based products and solutions, including conversation, specialty and packaging papers, sector pulp and absorbent hygiene items.
Domtar pointed out that the sale of its Personalized Care organization marks the fruits of a course of action declared by the business in August 2020, through which it undertook a complete strategic overview of worth-generating solutions for the business enterprise. The business expects the transaction to close by the conclude of the to start with quarter 2021.
Next the sale, Domtar will intensify its concentration on building an marketplace-foremost Paper, Pulp and Packaging company to produce lengthy-term shareholder value.
Domtar has begun to execute its strategic strategy to enter the containerboard current market with hugely aggressive belongings and a differentiated go-to-current market system.
The firm mentioned that the Kingsport conversion delivers it with a strategic entry position to develop an up to 2.5 million ton business and turn into a very long-time period strategic supplier to the packaging business.
Domtar strategies to use proceeds from the sale of the Own Treatment enterprise to lower its personal debt by about $600 million and to repurchase about $300 million in shares by means of an accelerated share repurchase plan as properly as open up market place repurchases.
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