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Domtar Closes Xerox Paper Biz Buy

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Domtar Corporation (UFS - Free Report) , through its operating subsidiaries, recently announced the completion of the acquisition of Xerox Corporation’s (XRX - Free Report) paper and print media business in the U.S. and Canada, for an undisclosed amount. The deal was initially announced on Mar 21, 2013.

Domtar, which recorded revenues of $5.5 billion in 2012, manufactures and distributes a wide array of fiber-based products, which include communication papers, specialty and packaging papers and adult incontinence products.

The company is the largest integrated marketer of uncoated freesheet paper in North America with established brands such as Cougar, Lynx Opaque Ultra, Husky Opaque Offset, First Choice and Domtar EarthChoice. Domtar also owns and operates an extensive network of strategically located paper and printing supplies distribution facilities.

Through this acquisition Domtar added a globally strong brand name to its broad paper offering. The acquisition also allows Domtar to better serve its customers. Domtar will include the business acquired into its pulp and paper segment.

The deal is a win-win situation for both these companies. While it provides a comprehensive one-stop shop solution for Domtar; on the other hand, it enables Xerox to focus on its core business of selling its broad range of consumables, such as toner and ink and Replacement Cartridges.

Domtar currently has a Zacks Rank #3 (Hold) for the short term. Other players in the industry who are worth a look include Orbotech Ltd. (ORBK - Free Report) which has a Zacks Rank #1 (Strong Buy) and NCR Corp. (NCR - Free Report) , which has a Zacks Rank #2 (Buy).

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