MONTREAL - Domtar Corporation today announced that it has entered into an agreement to sell its Ariva business in the United States to privately-held Central National-Gottesman Inc. The business will be integrated into Lindenmeyr Munroe ("Lindenmeyr"), a division of Central National-Gottesman, and the transaction is expected to close at the end of July 2013, subject to customary closing conditions.

"Our employees' efforts to adjust to a rapidly changing printing industry are commendable and I am appreciative of their dedication over the years," said John D. Williams, President and Chief Executive Officer of Domtar. "Today's decision to rationalize and sell the business represents the best alternative for our shareholders and the agreement with Lindenmeyr, a well-established and long-time valued business partner of Domtar, will assure business continuity for customers. Lindenmeyr has committed to quickly assess its business requirements and this will provide employment opportunities for Ariva's employees."

In a subsequent transaction that Domtar is not party to, immediately following the closing of the sale, the purchaser, Central National-Gottesman Inc., has agreed to sell the US Midwest portion of the Ariva business to The Millcraft Paper Company, a family-run paper merchant based in Cleveland, Ohio.

Ariva has approximately 400 employees in the United States. Headquartered in Covington, Kentucky, Ariva operates from 15 locations in the United States across eight states in the Northeast and Midwest regions. Domtar will take proper measures to assist the employees affected by the transaction in accordance with its policies.

Ariva's Canadian operations are not affected by the transaction. The Canadian operations will be consolidated into Domtar's Pulp and Paper Division as they had been historically, upon closing of the transaction.