As previously reported, Domtar Corporation announced on March first of this year, that it has indeed sold its Personal Care business to American Industrial Partners for $920 million. This transfer will be a significant milestone in the company’s strategic transformation to become a leading paper, pulp and packaging company.
“The sale of The Personal Care is part of our ongoing effort to strategically optimize our portfolio and allows us to strengthen our balance sheet, increase liquidity and buy back shares”, said John D. Williams, President and Chief Executive Officer. “I want to thank the employees for their hard work and dedication throughout the process, and for their contributions over the years”.
Following the closing of the sale, Michael Fagan, President of Domtar Personal Care, will continue to lead the Personal Care business and will leave Domtar. Mr. Williams added “On behalf of the Board and the Management Committee, I would like to thank Mike for his exemplary leadership and service”.
The company plans to use $600 million of the proceeds to reduce debt and $300 million to repurchase stock.
Domtar is a leading supplier of a wide variety of fiber-based products, including communication, specialty and packaging papers and market pulp. With approximately 6,600 employees serving more than 50 countries around the world, Domtar is driven by a commitment to transforming sustainable wood fibers into useful products that people rely on every day. Domtar’s annual sales are approximately $3.7 billion, and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.