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Domtar buys US baby diaper maker for $272M

Domtar estimates that its personal care division will see $10 million in annual saving.


May 28, 2013
by The Canadian Press

MONTREAL – Domtar Corp. has signed a $272-million deal to buy Associated Hygienic Products, a US maker of store brand infant diapers, from DSG International.

Domtar estimates that its personal care division will see $10 million in annual savings within two years of the deal, benefiting from lower purchasing costs, lower general and administrative costs and a sharing of best practices.

AHP has a 376,000 square foot manufacturing plant in Delaware, Ohio and a 312,000 sq. ft. manufacturing facility in Waco, Texas.

The 621-employee company, which had $320 million of annual sales, also has administrative offices and a distribution centre in Duluth, Ga.

The deal is expected to close in the second quarter of this year, subject to closing conditions.

Domtar manufactures and sells a wide variety of wood fibre products including office, specialty and packaging papers and adult incontinence products.

©The Canadian Press