Domtar Corp. said it will buy European diaper maker Attends Healthcare Ltd for €180-million ($233.52-million U.S.) as the Canadian paper maker looks to strengthen its personal care segment amid volatility in its core business.
"Demand for incontinence care products in Europe is strong, and our intent is to double earnings within the next five years," said Chief Executive John Williams.
Domtar, one of North America's largest producers of uncoated freesheet paper, has been grappling with weak pulp prices and higher input costs.
"The acquisition of Attends Europe moves us further along the path we started down last summer and it consolidates our ownership of the Attends brand on both sides of the Atlantic," said Mr. Williams.
In August 2011, Domtar said it would buy North America-focused Attends Healthcare Inc. for $215-million.
The acquired business has annual run rate sales of €140-million, said Domtar, which is buying privately held Attends from Rutland Partners.
The transaction is expected to close in the first quarter of 2012.