Domtar to sell personal care business to private-equity firm American Industrial Partners for $920 million

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Domtar Corp. sid Friday it has entered an agreement to sell its personal care business to private-equity firm American Industrial Partners for $920 million. The announcement comes after Domtar began a strategic review of its business in August, and decided to refocus on its core paper, pulp and packaging business. The company is also planning to entered the containerboard market, it said in a statement. Proceeds of the dal will be used to reduce debt by about $600 million. The company is also planning to buy back about $300 million of its shares via an accelerated program. The deal is expected to close by the end of the first quarter. Domtar shares jumped 4% premarket on the news, but have fallen 8.5% in the last 12 months, while the S&P) 500 has gained 17.5%.
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