Paper-producer announces first Attends profits after acquiring the adult incontinence product company in September for $315 million
October 28, 2011
by The Canadian Press
MONTREAL—Paper and pulp producer Domtar Corp. has earned its first profits from the acquisition of Attends as it pushed to double the business of the adult incontinence products company in five years.
Quebec-based Domtar, which beat analyst expectations with its third-quarter earnings, says the personal care products segment has earned $2 million in profit from $17 million worth of sales since the deal closed in September.
The company’s third-quarter earnings came in above what analysts had anticipated even though its profits dropped amid weaker selling prices and higher costs.
Domtar paid $315 million cash to purchase Attends Healthcare Inc. as part of its diversification efforts to offset the secular decline in paper demand.
The company says it is looking for other acquisition opportunities up to $1 billion to $1.5 billion in size.