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Domtar Closes Associated Hygienic Buy

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In a concerted effort to strengthen its Personal Care segment through lateral expansion, Domtar Corporation (UFS - Free Report) closed the Associated Hygienic Products acquisition for an undisclosed amount.

Associated Hygienic Products is a wholly-owned subsidiary of Disposable Soft Goods International (DSG), a pioneer in the disposable diaper industry. DSG is a Thailand-based company that has expanded into seven manufacturing locations across the globe since it formation in 1972.

Associated Hygienic Products has been manufacturing and selling disposable baby diapers in North America since its inception in 1984. It has evolved as the third largest manufacturer of such products in the continent. Headquartered in Duluth, Ga, Associated Hygienic Products boasts state-of-the-art manufacturing and distribution facilities in Delaware, Ohio and Waco, Texas.

The strategic purchase of Associated Hygienic Products is likely to augment the baby-diaper product category of Domtar. Post-integration, the acquired business will form an integral part of the Personal Care reportable segment of Domtar.

With revenues of $5.5 billion in 2012, Domtar manufactures and distributes a wide array of fiber-based products including 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.

Domtar currently carries a Zacks Rank #2 (Buy). Other companies in the industry that are worth mentioning include Fibria Celulose SA (FBR - Free Report) , Orchids Paper Products Company (TIS - Free Report) and Rock-Tenn Company , each carrying a Zacks Rank #2 (Buy).

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