Domtar to Acquire Incontinence Products Producer Attends
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Domtar Corp., Montreal, Que., Canada, this week agreed to acquire the privately-held Attends Healthcare Inc., a manufacturer and supplier of incontinence products, from KPS Capital Partners, L.P. for $315 million. The closing of the transaction is expected during the third quarter, subject to customary closing conditions.
Attends produces a complete line of incontinence care products and washcloths marketed primarily under the Attends brand name. The company has a wide product offering encompassing more than 170 SKUs, and it serves a diversified customer base in multiple channels throughout the U.S. and Canada. It operates a 775,000 sq ft facility with nine production lines and a state-of-the-art distribution center in Greenville, N.C. Attends has approximately 330 employees, annual sales of approximately $200 million, and an estimated run-rate EBITDA of $39 million.
"This is a good transaction that allows us to take measured steps into the consumer products market in a product area where high single-digit global growth is expected," said John D. Williams, president and CEO of Domtar. "We believe there is the potential to double Attends' earnings within five years and we are committed to unleashing the great organic growth potential. With this acquisition, we will consume internally some of our high quality Lighthouse fluff pulp produced in our nearby Plymouth, N.C., mill. Domtar will continue to look for innovative ways to build growing businesses based on sustainable wood fiber."
Michael Fagan, currently president and CEO of Attends Healthcare Inc., will continue in his functions. "I am delighted to join Domtar and to take the business to the next level of success. With strong commitment and support, the new ownership structure will allow us to realize the full potential of Attends," Fagan noted.
The acquired business will be presented as a new reportable segment in Domtar's financial statements filed to the Securities and Exchange Commission starting in the quarter following the closing of the transaction. Domtar will use cash on hand to pay for the acquisition and intends to redeem most of Attends' outstanding debt upon closing of the transaction.
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