A Fort Mill business is selling part of its operation for almost $1 billion
Fort Mill based Domtar announced the company has an agreement to sell its personal care business to American Industrial Partners for $920 million.
According to a Domtar release, the sale should close by the end of first quarter 2021. The move allows Domtar to focus efforts on its paper, pulp and packaging business. In the release, Domtar president and CEO John D. Williams said the move will position his company “for a sustainable and successful future.” The sale helps Domtar strengthen its balance sheet, improve liquidity and buy back shares.
“The sale is an important component of our strategic plan and will provide us with additional capital and resources to strengthen and invest in the future of Domtar, leading to a more focused business portfolio,” Williams said in the release.
American Industrial Partners is an equity firm with focus on purchase and improvement of industrial businesses in the U.S. and Canada, per the release. The company has more than 100 acquisitions of businesses with $300 million to more than $1 billion in revenue.
“We are confident that AIP is the right owner to advance the business and look forward to working with them to execute a smooth and successful transition for the customers and employees of personal care,” Williams said.
Domtar provides fiber-based products for communication, packaging, paper, market pulp and absorbent hygiene products. The Fort Mill company has 8,800 employees in 50 countries. The company has annual sales of about $5.2 billion, per the release. Domtar headquarters is located in Kingsley.
The Domtar news comes after an announcement in its second quarter 2020 earnings report of a $200 million cost-savings plan by the end of 2021. That plan included the loss of 780 jobs, but none of them local. They involved plants in Tennessee, Michigan and Arkansas.
The Fort Mill offices for Domtar employ about 550 people.
This story was originally published January 11, 2021 at 1:42 PM.
