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
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.