Domtar Corporation recently announced that it has completed the previously disclosed sale of its personal care business to affiliates of American Industrial Partners for $920m. This divestiture is a significant milestone in the company’s strategic transformation to become a leading paper, pulp and packaging company.
“The sale of the personal care business is part of our ongoing effort to strategically optimize our portfolio and allows us to strengthen our balance sheet, enhance liquidity and buy back shares,” said John Williams, President and Chief Executive Officer. “I want to thank the employees for their hard work and dedication throughout the process, and for their contributions over the years.”
Following the closing of the sale, Michael Fagan, President of Domtar Personal Care, will continue leading the personal care business and leave Domtar. “On behalf of the Board and management committee, I would like to thank Mike for his leadership and exemplary service,” said Williams.
The Company plans to use $600m of the proceeds to reduce debt and $300m to repurchase shares.