Fiber-based products designer and manufacturer Domtar has entered into an agreement to sell its Ariva business to Central National-Gottesman, a pulp and paper marketer in the US.
The business in the US will be integrated into Central National-Gottesman’s division, Lindenmeyr Munroe. Its Canadian operations will be consolidated into Domtar’s Pulp and Paper Division, upon closing of the transaction.
Domtar president and chief executive officer John Williams said the company’s decision to rationalize and sell the business represents a better alternative for its shareholders.
"Lindenmeyr has committed to quickly assess its business requirements and this will provide employment opportunities for Ariva’s employees," Williams added.
Central National-Gottesman has agreed to sell the US Midwest portion of the Ariva business to The Millcraft Paper Company, a paper merchant based in the US, immediately following the closing of the sale.
The transaction is subject to customary closing conditions and is expected to close at the end of July 2013.
Ariva operates from 15 locations in the US across eight states in the Northeast and Midwest regions.