Domtar is to expand its personal care business in Europe with the acquisition of Spanish branded adult incontinence products manufacturer Laboratorios Indas (Indas).
The company said the move is “a critical step” to building a pan-European business.
Domtar will acquire all the outstanding capital stock for €285m and the business is expected to have approximately €140m of debt, net of cash, at closing.
The majority of the debt will be repaid by Domtar in connection with the closing of the transaction.
John Williams, president and chief executive of Domtar, said: “The acquisition of Indas advances our transformation into a leader in personal care, an attractive market segment that is an important growth engine for Domtar.
“With the addition of the new business, Domtar will become one of the leading adult incontinence products manufacturers in Europe, providing the critical mass upon which to build a pan-European business.
“As a result of this transaction, we are substantially closer to achieving our previously stated goal of generating at least $300 million of EBITDA from fibre based consumer products by 2017.”
Michael Fagan, senior vice-president, personal care, added: “Indas is a leading marketer of adult incontinence care products in Spain with its IncoPack and Indasec® line of products, and we are pleased to be adding these prominent brands to our portfolio.”
Indas distributes its products in three main channels: pharmacies, hospitals and retail. It operates a manufacturing facility in Toledo, Spain.
Javier Martin, chief executive of Laboratorios Indas, said: “The acquisition by Domtar is a great outcome for our customers and our employees.
“Domtar is a strategic long-term owner that is committed to growth in personal care and it will give us access to the resources and the technology to accelerate our growth plans and be successful.”
The closing of the transaction is expected by year-end 2013, subject to customary closing conditions.
