The larges manufacturer and distributer of uncoated, wood-free paper in North America is taking over Attends, the Scandinavian manufacturer of incontinence products. The deal worth 180 million euros is expected to be finalized during the first quarter 2012. The president and CEO of Domtar, D.Williams, is planning to double Attends‘ profits in the next five years.
Commentary: Domtar’s take-over means that Attends as an enterprise no longer has any financial investors. After Rutland Partners had nearly doubled the company’s market value in a few years, the new owner is, once again, a buyer from the industry and commerce sector. Domtar’s goal to double the profit (currently 23 million euros EBITDA) within the next five years is ambitious. The question for the large players in the German nursing aids market for incontinence products (Abena, SCA, Metsä Tissue, … ) is whether Attends will be more aggressive in trying to gain a share of the market now that they have new capital at their disposal.