Xerox Corp. has agreed to sell its U.S. and Canadian paper and print media products business to Domtar Corp., a Montreal-based paper distributor and manufacturer.
The transaction comes as Xerox is seeking to transition to a more services-oriented model, with more than half of the Norwalk company’s revenues currently coming from its services businesses.
Though Xerox does not manufacture paper, it has for years distributed a variety of paper products and specialty print media, including business forms, through its brand name. Under the transaction agreement, which is expected to close in the second quarter, Xerox’s paper business will become part of Domtar’s pulp and paper segment, with Domtar marketing and distributing Xerox-branded paper and print media.
“As Xerox broadens its business to focus more on services and innovative document technology, we saw an opportunity for our paper business clients to be better served by a leader in the industry,” said Frank Edmonds, senior vice president of Xerox’s Global Paper and Supplies Distribution group, in a prepared statement.
Xerox will continue to manufacture and market products such as toner and ink cartridges, the company said.
