Domtar Corporation has signed, through its operating subsidiaries, an agreement to acquire 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 in a statement. "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 distributes 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 in a statement.
According to Canadian media reports, Domtar will manufacture 90% of Xerox paper in the future, while the remaining 10% of very low-volume specialty papers are under evaluation.
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. Financial details were not disclosed.
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