Domtar Corporation has announced the signing of a definitive agreement for the acquisition of privately-held Attends Healthcare, Inc., a manufacturer and supplier of incontinence products, from KPS Capital Partners, L.P. for $315 million. The closing of the transaction is expected during the third quarter 2011.
"This is a good transaction that allows us to take measured steps into the consumer products market in a product area where high single-digit global growth is expected," says John D. Williams, president and chief executive officer of Domtar. "We believe there is the potential to double Attends' earnings within five years and we are committed to unleashing the great organic growth potential. With this acquisition, we will consume internally some of our high quality Lighthouse fluff pulp produced in our nearby Plymouth, North Carolina mill."
Attends produces a complete line of incontinence care products and washcloths marketed primarily under the Attends brand name. The company has a wide product offering encompassing over 170 SKUs and it serves a diversified customer base in multiple channels throughout the United States and Canada. The company operates a 775,000 square foot facility with nine production lines and a state-of-the-art distribution center in Greenville, North Carolina. Attends has approximately 330 employees, annual sales of approximately $200 million, and an estimated run-rate EBITDA of $39 million.
Michael Fagan, currently president and chief executive officer of Attends Healthcare, Inc., will continue in his functions. Commenting on the transaction, he says, "I am delighted to join Domtar and to take the business to the next level of success. With strong commitment and support, the new ownership structure will allow us to realize the full potential of Attends."