Nov 19, 2013. /Lesprom Network/. Domtar Corporation signs a definitive agreement for the acquisition of privately-held Laboratorios Indas, SAU, a leading branded incontinence products manufacturer and marketer in Spain. Domtar will acquire all the outstanding capital stock for Euro 285 million and the business is expected to have approximately Euro 140 million of debt, net of cash, at closing. The net debt is expected to be reduced by the collection of approximately Euro 25 million of past due accounts receivable before year-end or early 2014, resulting in an enterprise value of Euro 400 million. The majority of the debt will be repaid by Domtar in connection with the closing of the transaction, as the company said in the press release received by Lesprom Network.

"The acquisition of Indas advances our transformation into a leader in Personal Care, an attractive market segment that is an important growth engine for Domtar," said John D. Williams, President and CEO of Domtar. "With the addition of the new business, Domtar will become one of the leading adult incontinence products manufacturers in Europe, providing the critical mass upon which to build a pan-European business. As a result of this transaction, we are substantially closer to achieving our previously stated goal of generating at least $300 million of EBITDA from fiber based consumer products by 2017. As we continue on our journey to further expand in growth markets, we remain committed to returning the majority of free cash flow to shareholders."

Michael Fagan, Senior Vice-President, Personal Care said "Indas is a leading marketer of adult incontinence care products in Spain with its IncoPack and Indasec® line of products, and we are pleased to be adding these prominent brands to our portfolio. The combination of our strong franchise in Northern Europe with Indas' best-in-class adult incontinence products business in Southern Europe promises to deliver solid results."

With a primarily branded product offering, Indas has a leading market position across a number of adult incontinence segments in Spain including heavy incontinence and underpads as well as branded light incontinence.

The closing of the transaction is expected by year-end 2013, subject to customary closing conditions, including the notification required by the Spanish antitrust authorities. Lazard has acted as sole investment banker to the company in connection with the transaction.

Domtar Corporation designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products.