News

Domtar to expand personal care business with acquisition of Associated Hygienic Products

BY Jason Owen

MONTREAL — Domtar Corporation on Tuesday announced the signing of a definitive agreement for the acquisition of privately-held Associated Hygienic Products, the largest manufacturer and supplier of store brand infant diapers in the United States, from DSG International for $272 million. The closing of the transaction is expected by the end of the second quarter of 2013, subject to customary closing conditions.

"The market for store brand infant diapers is growing steadily in North America driven by high quality products and a strong value proposition. The acquisition of AHP will provide meaningful market expansion opportunities and innovative product development capabilities with our existing personal care business, as well as synergies to the bottom line," said John D. Williams, president and CEO of Domtar. "This will be our fourth transaction in personal care in two years, and with it the division will reach over $200 million in annualized EBITDA by 2017. This earnings runway is part of our company-wide goal of having $300-$500 million in annualized EBITDA from growing businesses over the next four years."

AHP manufactures and markets infant diapers in the U.S. with established long-term relationships in the retail distribution channels. AHP operates two large modern facilities, a 376,000 square-foot manufacturing facility in Delaware, Ohio, and a 312,000 square foot manufacturing facility in Waco, Texas. The company also has administrative offices and operates a distribution center in Duluth, Ga. AHP has 621 employees and has annual run rate sales and EBITDA of $320 million and $31 million respectively.

It is anticipated that the integration to Domtar’s personal care division will provide annualized synergies of $10 million within two years. The synergies will come from a combination of lower purchasing costs, a reduction in general and administrative costs and sharing of best practices in manufacturing and product development.

Commenting on the benefits of the acquisition, Michael Fagan, senior vice president, personal pare said, "This acquisition will add a key product line to our offering, a competitive manufacturing base to our existing footprint and solid access to the retail channels for our adult incontinence products. AHP invests heavily in research and development and brings to the marketplace quality products, a highly trained workforce and the know-how to service large retailers. I am also impressed with the substantial investments made in the past five years in the facilities, which will limit the capital requirements for the foreseeable future."

The acquired business will be integrated in the personal care segment of Domtar’s financial information filed to the Securities and Exchange Commission.

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

FDA approves Perrigo overactive bladder drug

BY Alaric DeArment

ALLEGAN, Mich. — The Food and Drug Administration has approved a generic drug for incontinence made by Perrigo Co., the drug maker said Wednesday.

Perrigo announced the approval of trospium chloride extended-release capsules in the 60 mg strength, a once-daily treatment for overactive bladder with symptoms of urge urinary incontinence, urgency and urinary frequency. The drug is a generic version of Allergan’s Sanctura XR, which has annual sales of $54 million, according to Symphony Health Solutions.

Perrigo also said it would challenge Eli Lilly’s patent for the topical testosterone treatment Axiron by filing for approval of a generic version with the Food and Drug Administration, prompting Lilly and partnering company Acrux to file a lawsuit in the U.S. District Court for the Southern District of Indiana last week. According to Symphony Health Solutions, Axiron has annual sales of about $229 million.


Are you a pharmacy technician working in the retail industry? Find our group on Facebook for more stories like this and join the conversation.

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?
News

Bi-Lo to buy 165 stores from Delhaize for $265 million

BY Alaric DeArment

JACKSONVILLE, Fla. — The parent company of the Bi-Lo and Winn-Dixie supermarket chains will buy three chains from Belgium-based Delhaize Group.

Bi-Lo Holdings said it would acquire the Sweetbay, Harveys and Reid’s chains from Delhaize for $265 million. The deal includes 72 Sweetbay stores, leases for 10 prior Sweetbay locations, 72 Harveys stores and 11 Reid’s stores, for a total of 165 stores and 10,000 employees throughout the Southeast. Bi-Lo Holdings already operates 686 stores, 482 of which have pharmacies, throughout the southeast.

"Sweetbay, Harveys and Reid’s are well-recognized and trusted businesses that share our passion for exceptional service," Bi-Lo Holdings president and CEO Randall Onstead said. "We look forward to welcoming the outstanding associates of all three chains to the Bi-Lo Winn-Dixie family."

 

keyboard_arrow_downCOMMENTS

Leave a Reply

No comments found

TRENDING STORIES

Polls

Which area of the industry do you think Amazon's entry would shake up the most?