TICKER SYMBOL Domtar (NYSE: UFS) (TSX: UFS) Xerox (NYSE: XRX)
MONTREAL, QC and NORWALK, CT, March 22, 2013 /PRNewswire/ - Domtar Corporation (NYSE: UFS) (TSX: UFS), one of the largest manufacturers and distributors of paper in North America, has signed, through its operating subsidiaries, an agreement to acquire Xerox's (NYSE: XRX) paper and print media products business in the United States and Canada.
"The Xerox brand is well regarded in the paper markets it serves," said John D. Williams, Domtar's President and Chief Executive Officer. "This deal brings together Xerox's branded papers with Domtar's already comprehensive paper offering and will allow us to better serve our customers."
While Xerox does not manufacture paper, the company has long distributed through its brand name a broad range of coated and uncoated papers and specialty print media including business forms as well as carbonless and wide-format paper. This business will now become part of Domtar's pulp and paper segment, and Domtar will market and distribute Xerox-branded paper and print media."As Xerox broadens its business to focus more on services and innovative document technology, we saw an opportunity for our paper business clients to be better served by a leader in the industry," said Frank Edmonds, senior vice president, Xerox Global Paper and Supplies Distribution Group. "It's an across-the-board win. Xerox benefits through a trademark licensing agreement with Domtar; Domtar adds a well-regarded brand to its portfolio; and our respective clients get a simplified, 'one-stop' experience through Domtar's extensive offerings and distribution network." Xerox will continue to manufacture, sell and support its broad range of consumables, such as toner and ink, and Xerox Replacement Cartridges. The transaction is expected to close in the second quarter of 2013, subject to customary closing conditions. Until the close, Xerox customers may continue to order paper and media through Xerox Supplies sales representatives, Xerox inside sales centers, or online at www.xerox.com. _____________________________