Domtar (NYSE: UFS) (TSX: UFS)
Xerox (NYSE: XRX)
MONTREAL, QC and NORWALK, CT, March 22, 2013 /PRNewswire/ - Domtar Corporation (NYSE: UFS) (TSX: UFS), one of the largest manufacturers and distributors of paper in North America, has signed, through its operating subsidiaries, an agreement to acquire Xerox's (NYSE: XRX) paper and print media products business in the United States and Canada.
"The Xerox brand is well regarded in the paper markets it serves," said John D. Williams, Domtar's President and Chief Executive Officer. "This deal brings together Xerox's branded papers with Domtar's already comprehensive paper offering and will allow us to better serve our customers."
While Xerox does not manufacture paper, the company has long distributed through its brand name a broad range of coated and uncoated papers and specialty print media including business forms as well as carbonless and wide-format paper. This business will now become part of Domtar's pulp and paper segment, and Domtar will market and distribute Xerox-branded paper and print media.
"As Xerox broadens its business to focus more on services and innovative document technology, we saw an opportunity for our paper business clients to be better served by a leader in the industry," said Frank Edmonds, senior vice president, Xerox Global Paper and Supplies Distribution Group. "It's an across-the-board win. Xerox benefits through a trademark licensing agreement with Domtar; Domtar adds a well-regarded brand to its portfolio; and our respective clients get a simplified, 'one-stop' experience through Domtar's extensive offerings and distribution network."
Xerox will continue to manufacture, sell and support its broad range of consumables, such as toner and ink, and Xerox Replacement Cartridges.
The transaction is expected to close in the second quarter of 2013, subject to customary closing conditions. Until the close, Xerox customers may continue to order paper and media through Xerox Supplies sales representatives, Xerox inside sales centers, or online at www.xerox.com.
Domtar Corporation (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products. The foundation of its business is a network of world class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar®, Lynx® Opaque Ultra, Husky® Opaque Offset, First Choice® and Domtar EarthChoice®. Domtar is also a leading marketer and producer of a complete line of incontinence care products marketed primarily under the Attends® brand name. Domtar owns and operates Ariva®, a network of strategically located paper and printing supplies distribution facilities. In 2012, Domtar had sales of US$5.5 billion from some 50 countries. The Company employs approximately 9,300 people. To learn more, visit www.domtar.com.
With sales approaching $23 billion, Xerox (NYSE: XRX) is the world's leading enterprise for business process and document management. Its technology, expertise and services enable workplaces - from small businesses to large global enterprises - to simplify the way work gets done so they operate more effectively and focus more on what matters most: their real business. Headquartered in Norwalk, Conn., Xerox offers business process outsourcing and IT outsourcing services, including data processing, healthcare solutions, HR benefits management, finance support, transportation solutions, and customer relationship management services for commercial and government organizations worldwide. The company also provides extensive leading-edge document technology, services, software and genuine Xerox supplies for graphic communication and office printing environments of any size. The 140,000 people of Xerox serve clients in more than 160 countries. For more information, visit http://www.xerox.com, http://news.xerox.com or http://www.realbusiness.com. For investor information, visit http://www.xerox.com/investor.
SOURCE DOMTAR CORPORATION