Paper manufacturer and distributor Domtar has signed an agreement to acquire Xerox's paper and print media products business in the United States and Canada.
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.
“The Xerox brand is well regarded in the paper markets it serves," said John D. Williams, Domtar's president and CEO. “This deal brings together Xerox's branded papers with Domtar's already comprehensive paper offering and will allow us to better serve our customers."
Xerox is broadening its business to focus more on services and innovative document technology, according to Frank Edmonds, senior vice president, Xerox Global Paper and Supplies Distribution Group. About the acquisition, he said: “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."
The transaction is expected to close in the second quarter of 2013, subject to customary closing conditions.
Domtar designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and adult incontinence products.