Domtar Corp to buy Spanish diaper maker Laboratorios Indas

Canadian paper and pulp products maker Domtar Corp yesterday agreed to buy privately held Spanish diaper maker Laboratorios Indas, for €285 million ($386 million).

Montreal-based Domtar will acquire Indas from private equity firms Portobello and Santander's Vista Capital for €285 million and will pay a majority of the company's debt of around €140 million while closing the transaction.

Portobello and Santander's Vista Capital  had acquired Indas in 2007 for around €350 million.

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.

It also produces a wide range of absorbent-related hygienic and medical products.

Indas, which operates a modern manufacturing facility in Toledo, Spain, distributes its products through pharmacies, hospitals and retail.

Indas is expected to have annual sales of approximately €190 million in 2014 and EBITDA of approximately €46 million.

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 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," he added.

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."

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

It is also a leading marketer and producer of a broad line of incontinence care products marketed primarily under the Attends brand name as well as baby diapers.

The company employs approximately 9,500 people and had 2012 sales of $5.5 billion.