(NYSE: UFS) (TSX: UFS)
MONTREAL, July 22, 2013 /CNW Telbec/ - Domtar Corporation (NYSE: UFS)
(TSX: UFS) today announced that it has entered into an agreement to
sell its Ariva business in the United States to privately-held Central
National-Gottesman Inc. The business will be integrated into Lindenmeyr
Munroe ("Lindenmeyr"), a division of Central National-Gottesman, and
the transaction is expected to close at the end of July 2013, subject
to customary closing conditions.
"Our employees' efforts to adjust to a rapidly changing printing
industry are commendable and I am appreciative of their dedication over
the years," said John D. Williams, President and Chief Executive Officer of Domtar. "Today's decision to rationalize and sell the business represents the
best alternative for our shareholders and the agreement with
Lindenmeyr, a well-established and long-time valued business partner of
Domtar, will assure business continuity for customers. Lindenmeyr has
committed to quickly assess its business requirements and this will
provide employment opportunities for Ariva's employees."
In a subsequent transaction that Domtar is not party to, immediately
following the closing of the sale, the purchaser, Central
National-Gottesman Inc., has agreed to sell the US Midwest portion of
the Ariva business to The Millcraft Paper Company, a family-run paper
merchant based in Cleveland, Ohio.
Ariva has approximately 400 employees in the United States.
Headquartered in Covington, Kentucky, Ariva operates from 15 locations
in the United States across eight states in the Northeast and Midwest
regions. Domtar will take proper measures to assist the employees
affected by the transaction in accordance with its policies.
Ariva's Canadian operations are not affected by the transaction. The
Canadian operations will be consolidated into Domtar's Pulp and Paper
Division as they had been historically, upon closing of the
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets
and distributes a wide variety of fiber-based products including
communication papers, specialty and packaging papers and absorbent
hygiene products. The foundation of its business is a network of world
class wood fiber converting assets that produce papergrade, fluff and
specialty pulps. The majority of its pulp production is consumed
internally to manufacture paper and consumer products. Domtar is the
largest integrated marketer of uncoated freesheet paper in North
America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a complete line of
incontinence care products marketed primarily under the Attends® brand name as well as baby diapers. Domtar owns and operates Ariva®, a network of strategically located paper and printing supplies
distribution facilities. In 2012, Domtar had sales of US$5.5 billion
from some 50 countries. The Company employs approximately 9,800 people.
To learn more, visit www.domtar.com.
About Central National-Gottesman Inc.
Founded in 1886 and headquartered in Purchase, New York, Central
National-Gottesman Inc. is a leading international marketer of pulp and
paper. The company has sales offices in 28 U.S. cities and 23 countries
worldwide. CNG operates several divisions, including its U.S.
Distribution Division, the largest independent paper merchant in the
U.S., comprised of Lindenmeyr, Spicers Paper, Inc. and Kelly Paper
Company; and Central National, a global provider of pulp, paper, and
packaging. The company's sales of pulp and paper exceed $4 billion
annually. To learn more, please visit www.cng-inc.com.
SOURCE: Domtar Corporation
For further information:
MEDIA AND INVESTOR RELATIONS
Corporate Communications and Investor Relations
FOR MORE INFORMATION
Corporate Communications and Public Affairs
Tel: 514-848-5555 ext. 85515