The
It follows a decision announced in August to conduct a review of "value-creating alternatives" for the personal care business it launched in 2011 with the announced purchase of Attends that closed in early 2012.
The sale is part of its strategic transformation towards packaging.
“This transaction represents a milestone in Domtar’s ongoing portfolio transformation and further advances our strategic initiatives that will position
He said the sale maximizes value for shareholders by strengthening its balance sheet, enhancing its cash position and buying back shares.
Proceeds will be used to reduce debt by
Construction hopes to begin in the second quarter and finish by the end of 2022, ahead of earlier expectations.
The company's goal is to expand packaging capacity to up to 2.5 million tons over time.
Analyst
"We expect that the purchase multiple of about 6.6 times our 2021 EBITDA forecast will be disappointing to investors," he wrote in a report.
He said
"So we view the personal care venture as a largely unsuccessful one."
The lack of interest from a strategic buyer contributed to the low sale price, Quinn added.
With the sale of the personal care business expected to close in the first quarter, Quinn said
"While we are disappointed by the price received, the transaction does simplify the story and position
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