Domtar Closes Divestiture of Personal Care Unit

SEATTLE (Scrap Monster): Domtar Corporation announced that it has completed the previously announced sale of its Personal Care business to affiliates of American Industrial Partners (AIP). The sale deal, worth $920 million, was initially declared in the month of August last year.

The divestment of the business unit is considered to be a significant milestone in the company’s strategic plan to emerge as a leading paper, pulp and packaging company in the world. The deal will help Domtar in optimizing its portfolio, strengthening its balance sheet and enhancing its liquidity position. The company will use the proceeds of the sale towards debt reduction and share repurchases.

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John D. Williams, President and Chief Executive Officer thanked all the employees for their hard work and dedication throughout the process, and for their contributions over the years. The successful culmination of the sale process will enable Domtar to deliver long-term value to its shareholders by focusing on its core business segments, he added.

The news release by Domtar said that Michael Fagan, President of Domtar Personal Care, will leave the company to lead the Personal Care business. The company thanked Mike for his leadership and exemplary service over the past several years.