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Domtar buys Xerox U.S. and Canadian paper business

A Domtar pulp machine in Hawesville, Ky. Montreal-based Domtar is buying Xerox’s specialty papers division for an undisclosed price.

Pierre Charbonneau/Domtar

North American paper giant Domtar Corp. is acquiring Xerox's paper and print media products business in Canada and the United States for an undisclosed price.

The Montreal-based company said Friday it will add Xerox's branded papers and specialty products to its own comprehensive offering.

Domtar CEO John Williams said the enlarged paper offering will allow the company to better service its customers.

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As of 2009, Xerox reportedly bought the paper from AbitibiBowater, which later became Resolute Forest Products.

Xerox distributes a range of coated and uncoated papers, and specialty products including business forms along with carbonless and wide-format paper.

U.S.-based Xerox said it decided to sell the paper business to an industry leader as it focused more on services and document technology.

The transaction is expected to close in the second quarter, subject to normal closing conditions.

On the Toronto Stock Exchange, Domtar's shares gained 64 cents at $80.01 in Friday afternoon trading.

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