By Frank Edmonds, senior vice president, Global Paper and Supplies Distribution Group, Xerox
You have probably heard by now that Xerox is selling its branded paper business in the U.S. and Canada to Domtar Corporation, one of the largest manufacturers and distributors of paper in North America. What you may not have heard yet is why and how this is an across-the-board win.
While we have never manufactured paper, Xerox has long distributed through its brand name a broad range of coated and uncoated papers and specialty print media including business forms as well as carbonless and wide-format paper. Effective June 1, 2013, Domtar will hold exclusive rights to market and distribute Xerox-branded paper and print media products in the U.S. and Canada.
So why do I say this is a win for all sides? This agreement brings together the well-respected Xerox brand with the scale and efficiency from Domtar’s manufacturing capacity, broad portfolio of products and extensive distribution network. As a result, the paper-purchasing process and access to Xerox-branded paper products will be more streamlined – a simpler way for our customers to work. Our respective clients get a simplified, one-stop experience.
It’s also important to note that this transaction has no impact on customer relationships with Xerox for our document technology and related consumables, like toner and ink. Xerox will continue to provide direct support for consumables and Xerox Replacement Cartridges.
We will be working with Domtar to ensure a smooth transition of the business and no disruption to our customers.
As we broaden our 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.
This begs the question then that as Xerox scales it Services business, should we expect to see more divestitures in our Document Technology business? The answer is that acquisitions and divestitures are part of our ongoing business strategy. For example, we recently announced the acquisition of Impika, a manufacturer of digital production presses that helps us expand our business in production inkjet printing.
For now, it’s business as usual. Until the close, Xerox customers may continue to order paper and media through Xerox Supplies sales representatives or on line to keep their MFDs and production printers printing.