The deal includes acquisition of Appvion’s coater and related equipment at the West Carrollton facility in Ohio

Domtar

Domtar has agreed to acquire Appvion’s point of sale paper business (Credit: Gerd Altmann from Pixabay)

US-based fibre-based products provider Domtar has signed an asset purchase agreement to acquire point of sale (POS) paper business from Appvion Operations for an undisclosed sum.

Under the deal, Domtar will acquire Appvion’s coater and related equipment at the West Carrollton facility in Ohio.

The company will also secure a licence for all corresponding intellectual property.

Domtar president and CEO John Williams said: “The combination of Domtar’s world-class paper-making capabilities with the West Carrollton coater’s significant scale will make a globally competitive point of sale paper business and provide new options for our future growth.”

The deal is expected to be completed in the second quarter of this year.

Following the divestment, Appvion will continue to focus on the development of a wide range of solutions for customers in the tag, label and entertainment markets, as well as the carbonless and speciality paper markets.

Appvion will focus more on the newly formed packaging and speciality coating division

In addition, the company will develop products under the newly-formed packaging and speciality coating division.

Appvion paper division president Graeme Hodson said: “The West Carrollton asset sale builds on that relationship and provides an opportunity for our POS business employees to become a part of a large integrated pulp and paper producer with the capability to leverage the coating asset to its maximum potential.”

Domtar manufactures a range of fibre-based products such as communication, speciality and packaging papers, market pulp and absorbent hygiene products.

In July 2019, Domtar secured a funding of $21.7m from the Canadian government to upgrade its Espanola paper mill and commercialise a new technology that could replace single-use plastics.

Based in Wisconsin, Appvion produces thermal, carbonless, security, inkjet, digital speciality and coloured papers. The firm, which has around 10,000 employees, has operations in over 50 countries across the world.

It has manufacturing facilities at Wisconsin, Ohio and Pennsylvania.