Montreal based Domtar Corporation announced today an agreement to acquire US based Attends Healthcare, the manufacturer and supplier of incontinence products. Paying $315 million, Domtar expects the transaction to be complete by the end of the third quarter in 2011.
"This is a good transaction that allows us to take measured steps into the consumer products market in a product area where high single-digit global growth is expected," said John D. Williams, President and Chief Executive Officer of Domtar. "We believe there is the potential to double Attends' earnings within five years and we are committed to unleashing the great organic growth potential. With this acquisition, we will consume internally some of our high quality Lighthouse™ fluff pulp produced in our nearby Plymouth, North Carolina mill. Domtar will continue to look for innovative ways to build growing businesses based on sustainable wood fiber."
Attends Healthcare’s Attends incontinence care line holds a diversified customer base located throughout the United States and Canada. Its 775,000 square foot facility is located in Greenville, North Carolina and features nine production lines with a state-of-the-art distribution center. Employing approximately 330, Attends Healthcare annual sales reach an estimated $200 million.
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Attends Healthcare President and Chief Executive Officer Michael Fagan will continue in his positions at the company. "I am delighted to join Domtar and to take the business to the next level of success. With strong commitment and support, the new ownership structure will allow us to realize the full potential of Attends,” said Fagan.
Domtar, a leading manufacturer and marketer of paper products in North America is known for its Cougar, Lynx, and Opaque Ultra brands.