Domtar Corporation Announces Acquisition in Personal Care

(All financial information is in U.S. dollars, unless otherwise noted.)

Domtar Corporation (NYSE: UFS) (TSX: UFS) today announced that it had agreed to purchase the privately-held Home Delivery Incontinent Supplies Co. (“HDIS”), a leading, national direct-to-consumer provider of adult incontinence and related products for a total cash consideration of $45 million with a possible earn-out payment of up to $10 million. The closing of the transaction is expected by year-end, subject to customary closing conditions.

“Direct-to-consumer engagement and interaction is growing, and provides unique consumer and customer insights that are critical to continuously improve the value of our offering,” said Michael Fagan, President, Domtar Personal Care division. “Adding HDIS’s successful high-touch service model and capabilities supports our Personal Care growth strategy.”

“We found in Domtar Personal Care shared values of treating customers and employees like family,” said Dawn Grench, founder and owner of HDIS. “I look forward to watching the continued growth and success of the business.”

Founded in 1986 and headquartered in Olivette, Missouri, HDIS provides customers with high-quality products and a personalized service for all of their incontinence needs. The Company has total revenues of approximately $65 million, operates a 200,000 square foot distribution center in Olivette, Missouri, as well as two retail locations, in Texarkana, Arkansas and Daytona Beach, Florida and employs approximately 240 people.

About DomtarDomtar is a leading provider of a wide variety of fiber-based products including communication, specialty and packaging papers, market pulp and absorbent hygiene products. With over 10,000 employees serving more than 50 countries around the world, Domtar is driven by a commitment to turn sustainable wood fiber into useful products that people rely on every day. Domtar’s annual sales are approximately $5.3 billion and its common stock is traded on the New York and Toronto Stock Exchanges. Domtar’s principal executive office is in Fort Mill, South Carolina. To learn more, visit www.domtar.com.

Forward-Looking StatementsThis release contains forward-looking statements regarding the acquisition of HDIS, including its expected closing date and impact on our business, Actual results may differ materially for a range of reasons, including the failure of the closing conditions to be satisfied, customer and competitor reactions, challenges in integrating the newly-acquired business and changes in demand, pricing and costs.

View source version on businesswire.com: http://www.businesswire.com/news/home/20160818005305/en/

Domtar CorporationMEDIA RELATIONSDavid Struhs, 803-802-8031Vice-PresidentCorporate Services and SustainabilityorINVESTOR RELATIONSNicholas Estrela, 514-848-5555 x 85979DirectorInvestor Relations

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