Nov. 19 (Bloomberg) -- Domtar Corp., the Canadian paper maker that produces Attends brand goods, agreed to pay 285 million euros ($385 million) to buy Laboratorios Indas SAU and expand in Europe’s market for adult-incontinence products.
Domtar’s third acquisition of a hygiene-products maker in two years is “providing the critical mass upon which to build a pan-European business,” John Williams, chief executive officer of Montreal-based Domtar, said in a statement today.
Domtar’s revenue from personal care rose 58 percent from the year earlier to $175 million in the third quarter, while pulp and paper sales were $1.2 billion, according to data compiled by Bloomberg. The company’s goal is to generate at least $300 million of earnings before interest, taxes, depreciation and amortization from fiber-based consumer products by 2014, Domtar said.
The cash transaction also includes Domtar taking on about 140 million euros of closely held Indus’s debt, giving the deal an enterprise value of about 400 million euros, Domtar said. The company expects to reduce the net debt by collecting about 25 million euros of past due accounts receivable by year end, it said.
Domtar has produced Attends brand products since buying Attends Healthcare Holdings Ltd. from Rutland Private Equity in 2012. Earlier this year, Domtar paid $272 million for DSG International Ltd.’s Associated Hygienic Products, a manufacturer of infant diapers.
Domtar fell 0.7 percent to $84.65 at the close in New York. The shares have climbed 9.4 percent in the last 12 months.
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