Domtar to Sell U.S. Ariva Business to Central National-Gottesman
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Domtar Corp., Montréal, Qué., Canada, this week reported that it will sell its Ariva business in the U.S. to privately-held Central National-Gottesman Inc., Purchase, N.Y. Ariva, Covington, Ky., is a network of strategically located paper and printing supplies distribution facilities. The business will be integrated into Lindenmeyr Munroe, a division of Central National-Gottesman. The transaction is expected to close at the end of this month, subject to customary closing conditions.
"Our employees' efforts to adjust to a rapidly changing printing industry are commendable and I am appreciative of their dedication over the years," said John D. Williams, president and CEO of Domtar. "Today's decision to rationalize and sell the business represents the best alternative for our shareholders and the agreement with Lindenmeyr, a well-established and long-time valued business partner of Domtar, will assure business continuity for customers. Lindenmeyr has committed to quickly assess its business requirements and this will provide employment opportunities for Ariva's employees."
In a subsequent transaction that Domtar is not party to, immediately following the closing of the sale, Central National-Gottesman has agreed to sell the U.S. Midwest portion of the Ariva business to The Millcraft Paper Co. a family-run paper merchant based in Cleveland, Ohio.
Ariva has approximately 400 employees in the U.S. It operates from 15 locations in the U.S. across eight states in the Northeast and Midwest regions. Domtar will take proper measures to assist the employees affected by the transaction in accordance with its policies.
Ariva's Canadian operations are not affected by the transaction. The Canadian operations will be consolidated into Domtar's Pulp and Paper Division as they had been historically, upon closing of the transaction.
Domtar produces a wide variety of fiber-based products including communication papers, specialty and packaging papers, and absorbent hygiene products. The foundation of its business is a network of world class wood fiber converting assets that produce paper grade, fluff, and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America. It also produces a complete line of incontinence care products as well as baby diapers. The company employs approximately 9,800 people.
Central National-Gottesman is an international marketer of pulp and paper. The company has sales offices in 28 U.S. cities and 23 countries worldwide. It operates several divisions, including its U.S. Distribution Division, the largest independent paper merchant in the U.S., comprised of Lindenmeyr, Spicers Paper, Inc., Kelly Paper Co., and Central National, a global provider of pulp, paper, and packaging. The company's sales of pulp and paper exceed $4 billion annually.
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