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Domtar selling its U.S. Ariva paper operations

File photo of Domtar president and CEO John Williams.

Shaun Best/Reuters

Domtar Corp. is selling its Ariva paper business in the United States to a private company that plans to resell some of the assets to another company and integrate the remainder into its Lindenmeyr Munroe division.

Kentucky-based Ariva employs about 400 people and operates 15 paper and printing supplies distribution facilities in the Northeast and Midwest regions.

Montreal-based Domtar didn't release financial details of its sale of the assets to Central National-Gottesman Inc., which will sell the Midwest portion of Ariva to Millcraft Paper of Cleveland, Ohio.

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Ariva's Canadian operations will be integrated into Domtar's pulp and paper division.

Domtar says the sale is the best option for shareholders given changes in the printing industry, and that making a deal with Lindenmeyr, a long-time business partner, will ensure continuity for its customers.

"Lindenmeyr has committed to quickly assess its business requirements and this will provide employment opportunities for Ariva's employees," Domar chief executive and president John Williams said in the announcement Monday.

Domtar manufactures and sells pulp, paper and absorbent hygiene products.

Central National-Gottesman is an international marketer of pulp and paper and has sales offices in 28 U.S. cities and 23 countries worldwide.

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