Domtar to acquire Appvion’s POS paper business

Domtar, a fiber-based products provider, has signed an asset purchase deal with Wisconsin-based Appvion Operations to acquire the latter’s Point of Sale (POS) paper business for an undisclosed price.

As per the agreement, Domtar will acquire the coater and related equipment located only at Appvion’s facility in West Carrollton, Ohio and also a license for all corresponding intellectual property.

The deal is likely to be completed in Q2 2020.

Domtar is engaged in providing a range of fiber-based products such as communication, specialty and packaging papers, absorbent hygiene products, and market pulp.

Appvion, on the other hand, by developing and using coating formulations and applications, creates product solutions. The company manufactures thermal, carbonless, inkjet, security, digital specialty, and colored papers.

John Williams – President and Chief Executive Officer of Domtar 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.”

Appvion will continue to engage in manufacturing a range of products for its customers in the Tag, Label & Entertainment markets, the Carbonless & Specialty paper markets, and also on its newly formed Packaging & Specialty Coating Division.

Graeme Hodson – president of Appvion Paper division said: “Appvion and Domtar have enjoyed a strong mutually beneficial relationship over the last several years as part of our long term supply agreement.

“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.”