Domtar Completes Acqusition of Appvion’s POS Paper Business

SEATTLE (Scrap Monster): Domtar Corporation announced completion of acquisition of the Point of Sale (POS) paper business from Appvion Operations, Inc. The two parties had earlier entered into an asset purchase agreement in February this year. Both the companies have a track record of strong relationship over the past several years through a long-term supply agreement.

The acquisition covers all of the coater and related equipment at Appvion’s West Carrollton, Ohio, facility. Through the deal, Domtar has also acquired license for all corresponding intellectual property. With this, the Fort Mill, South Carolina-based has become a large-scale, integrated producer of POS paper.

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John Williams, President and Chief Executive Officer, Domtar said that the company is excited to add the business to its portfolio. The acquisition provides access into the growing global coated specialty papers market. Domtar managed to close the transaction on time, in the midst of uncertainties surrounding Covid-19 pandemic, he noted. Further, Williams thanked the employees for making the transition possible during these difficult times.

The company had recently decided to temporarily idle the operations of its Hawesville, Kentucky; Kingsport, Tennessee mill and the A62 paper machine at its Ashdown, Arkansas mill.