Central National-Gottesman to Acquire Domtar’s Ariva Operations in the United States
PURCHASE, NY—July 22, 2013—Central National-Gottesman (CNG) today announced that it has entered into an agreement with Domtar Corp. pursuant to which Lindenmeyr Munroe, a division of CNG, will acquire the U.S. operations of Domtar's Ariva paper distribution business.
Ariva, headquartered in Covington, KY, is a major U.S. paper distributor, with 15 locations in the East and Midwest. The closing is expected to take place by the end of July 2013. Immediately after the closing, CNG has agreed to sell the Midwest locations of Ariva, located in Cincinnati, Cleveland, Columbus, OH, Dayton, OH, Fort Wayne, IN, and Indianapolis, to The Millcraft Paper Co., a long-established and highly regarded paper merchant headquartered in Cleveland.
"Ariva is a respected paper distributor with a long history of providing high-quality products and services," said Ken Wallach, chairman and CEO of Central National-Gottesman. "We are pleased to have the opportunity to combine the successful Ariva operations in the East with our existing Lindenmeyr Munroe locations in the region, while at the same time finding an excellent home for Ariva's Midwest operations with Millcraft. We expect this acquisition to enable us to offer our customers and suppliers along the East Coast with an unrivaled level of service while strengthening
our leading position in this important market."
This transaction is CNG's sixth acquisition of a paper merchant in the past four years, including five in the United States and one overseas. It demonstrates once again CNG's commitment to the paper distribution business and the company's strong desire to grow, both organically and through acquisition.
About Central National-Gottesman
Founded in 1886 and headquartered in Purchase, NY, Central National-Gottesman is a leading international marketer of pulp and paper. The company has sales offices in 28 U.S. cities and 23 countries worldwide. CNG operates several divisions, including its U.S Distribution Div., the largest independent paper merchant in the United States, comprised of Lindenmeyr, Spicers Paper and Kelly Paper; and Central National, a global provider of pulp, paper, and packaging. The company's
sales of pulp and paper exceed $4 billion annually.
Domtar Corp. (NYSE: UFS) (TSX: UFS) designs, manufactures, markets and distributes a wide variety of fiber-based products including communication papers, specialty and packaging papers and absorbent hygiene products. The foundation of its business is a network of world-class wood fiber converting assets that produce papergrade, fluff and specialty pulps. The majority of its pulp production is consumed internally to manufacture paper and consumer products. Domtar is the largest integrated marketer of uncoated freesheet paper in North America with recognized brands such as Cougar, Lynx Opaque Ultra, Husky Opaque Offset, First Choice and Domtar EarthChoice. Domtar is also a leading marketer and producer of a complete line of incontinence care products marketed primarily under the Attends brand name. Domtar owns and operates Ariva, a network of strategically located paper and printing supplies distribution facilities. In 2012, Domtar had sales of US$5.5 billion from some 50 countries. The company employs approximately 9,800 people.