May 28 Canadian paper maker Domtar Corp said it will buy privately held diaper maker Associated Hygienic Products (AHP) for $272 million to expand its personal care business.
Domtar has acquired diaper makers in Europe and United States in the past two years, lowering its exposure to persistently weak pulp prices.
The company said it will buy AHP, the largest manufacturer and supplier of store brand infant diapers in the United States, from DSG International.
The acquisition, the fourth in Domtar's personal care business in two years, will result in annualized synergies of $10 million within two years.
Domtar's stock was up 2 percent at C$72.11 on the Toronto Stock Exchange on Tuesday morning. The company's U.S.-listed shares were up 2.8 percent at $69.81.