Domtar exits diaper business

January 12, 2021

By: The Working Forest Staff

MY ESPANOLA NOW — Domtar Corporation is selling its diaper and adult incontinence business for $920 million U.S., nearly a decade after adding the new line of products to offset declining paper sales.

The Montreal and South Carolina-based pulp and paper company says it has signed an agreement to sell the operations to the private equity firm American Industrial Partners.

Domtar CEO John Williams says it follows a decision announced last August to conduct a review of “value-creating alternatives” for the personal care business it launched in 2012 with the purchase of Attends.

The sale is part of Domtar’s transformation towards packaging and will reduce debt by $600 million U.S. and repurchase $300 million U.S. in shares.

Williams says the Kingsport, Tennessee mill will be retrofit to house a lightweight containerboard facility producing about 600,000 tons of recycled linerboard and corrugated material.

Reconstruction is expected to be complete by the end of 2022.

See more HERE.

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