In a concerted effort to strengthen its presence in the North
American market through lateral expansion,
) signed a deal to acquire the U.S. and Canadian paper and print
media products business of
) for an undisclosed amount.
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.
The acquisition will enable Domtar to expand its product
portfolio and augment its revenues by capitalizing on the Xerox
brand name. Although Xerox do not manufacture paper products on
its own, it has managed to create a niche market for a wide range
of coated and uncoated papers, specialty print media, and
carbonless and wide-format paper by using its brand name.
Post-acquisition, the acquired business entity will form a part
of the paper and pulp segment of Domtar.
On the other hand, the divestiture will enable Xerox to focus
more on its services and innovative document technology. At the
same time, Xerox will benefit through a trademark licensing
agreement with Domtar. The company will also continue to
manufacture and sell its consumables like toner and ink, and
Xerox Replacement Cartridges.
Headquartered in Norwalk, CT, Xerox is a leader in the
development, manufacture, marketing, servicing and financing of
document equipment across the world. The company also provides
extensive leading-edge document technology, services, software
and genuine Xerox supplies for graphic communication and office
printing environments of any size. The company has three
operating segments - Technology, Services and Others.
Xerox faces stiff competition from other players in the industry
), carrying a Zacks Rank #2 (Buy), and
Concurrent Computer Corporation
), which carries a Zacks Rank #1 (Strong Buy). Xerox currently
has a Zacks Rank #3 (Hold).
CONCURRENT NEW (CCUR): Free Stock Analysis
NCR CORP-NEW (NCR): Free Stock Analysis
DOMTAR CORP (UFS): Free Stock Analysis Report
XEROX CORP (XRX): Free Stock Analysis Report
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