In a concerted effort to strengthen its Personal Care segment
through lateral expansion,
) closed the Associated Hygienic Products acquisition for an
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Associated Hygienic Products is a wholly-owned subsidiary of
Disposable Soft Goods International (DSG), a pioneer in the
disposable diaper industry. DSG is a Thailand-based company that
has expanded into seven manufacturing locations across the globe
since it formation in 1972.
Associated Hygienic Products has been manufacturing and selling
disposable baby diapers in North America since its inception in
1984. It has evolved as the third largest manufacturer of such
products in the continent. Headquartered in Duluth, Ga,
Associated Hygienic Products boasts state-of-the-art
manufacturing and distribution facilities in Delaware, Ohio and
The strategic purchase of Associated Hygienic Products is likely
to augment the baby-diaper product category of Domtar.
Post-integration, the acquired business will form an integral
part of the Personal Care reportable segment of Domtar.
With revenues of $5.5 billion in 2012, Domtar manufactures and
distributes a wide array of fiber-based products including
communication papers, specialty and packaging papers and adult
incontinence products. The company is the largest integrated
marketer of uncoated freesheet paper in North America with
established brands such as Cougar, Lynx Opaque Ultra, Husky
Opaque Offset, First Choice and Domtar EarthChoice. Domtar also
owns and operates an extensive network of strategically located
paper and printing supplies distribution facilities.
Domtar currently carries a Zacks Rank #2 (Buy). Other companies
in the industry that are worth mentioning include
Fibria Celulose SA
Orchids Paper Products Company
), each carrying a Zacks Rank #2 (Buy).