Canadian company buys Waco diaper plantCanadian company buys Waco diaper planthttps://www.recenter.tamu.edu/news/newstalk-texas/?Item=71422013-06-10T07:31:00Z2013-06-10T00:00:00Z

WACO - A Canadian company will buy Georgia-based Associated Hygienic Products, which operates a diaper-making plant in Waco that employs about 250 people and has received $1.7 million in incentive money from the Waco-McLennan County Economic Development Corp. fund.

Domtar Corp. signed a definitive agreement to acquire AHP in a $272 million deal that should close second quarter 2013, according to a statement the company released from Montreal. It is buying the company from DSG International LTD, an Asian company.

AHP moved into the Greater Waco market in 2009, and twice expanded operations at its 312,000-sf on Texas Central Pkwy. Along the way, Waco City Council and McLennan County commissioners have approved tax breaks and awarded nearly $1.7 million in economic development funds.

Domtar spokesman Pascal Bosse said the Waco plant will serve a strategic purpose as it expands its presence in the United States.

Kris Collins, director of business retention and expansion for the Greater Waco Chamber of Commerce, said the city and county will vote to reassign the contracts for incentive money to Domtar, because the funds come with stipulations. For example, a company receiving them must pay its employees at least $12 an hour and offer health benefits comparable to those of the city and county government.

In Domtar’s most recent fiscal year, it posted annual sales of $320 million from primarily making private-label diapers for retailers to sell as their own brands.

Bosse said Domtar now has annual sales of $450 million in its personal care unit, meaning the acquisition will raise sales by 70 percent.

Waco Tribune-Herald
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