NEW YORK, Aug. 15, 2011 /PRNewswire/ — KPS Capital Partners, LP (“KPS”) announced today that it signed a definitive agreement to sell its portfolio company, Attends Healthcare, Inc. (“Attends” or the “Company”), to Domtar Corporation (NYSE: UFS) (TSX: UFS) for $315 million in cash.

Raquel Palmer, a Partner of KPS, stated, “During our ownership, Attends completed a stunning turnaround and has achieved significant revenue growth year after year. We are proud to be the catalyst for the transformation of Attends, which has resulted in the Company’s acquisition by a leading strategic buyer. We congratulate and thank Michael Fagan, Attends’ Chief Executive Officer, and his management team for their strategic vision and brilliant tactical execution. The enormous value created for our investors since we formed the Company in 2007 is the result of their collective effort.”

Michael Fagan, Chief Executive Officer of Attends, added, “KPS was the only investor to recognize the potential value of our business four years ago. Working in partnership with KPS, we quickly executed a remarkable turnaround that formed the foundation for our significant growth. We are very grateful to KPS for its leadership and its commitment to growing our business, which included funding the modernization of our manufacturing platform. We are thrilled to join Domtar, which has the material resources, access to capital and global reach that will enable Attends to reach another level of success.”

Completion of the transaction, which is expected during the third quarter, is subject to customary closing conditions.

Paul Weiss Rifkind Wharton & Garrison LLP served as legal counsel to KPS with respect to the transaction.

About Attends Healthcare, Inc.

Attends Healthcare, Inc. is a leading manufacturer and distributor of a complete line of adult incontinence products for the North American marketplace that are sold primarily under the Attends brand name. Attends Healthcare primarily serves the non-retail sectors with a focus on the acute care, long-term care, and rapidly growing home healthcare sectors. With over 300 employees, Attends is headquartered in Greenville, NC. For more information please visit www.attends.com.

About KPS Capital Partners, LP

KPS Capital Partners, LP is the manager of the KPS Special Situations Funds, a family of private equity funds with over $2.9 billion of assets under management focused on constructive investing in restructurings, turnarounds and other special situations. KPS has created new companies to purchase operating assets out of bankruptcy; established stand-alone entities to operate divested assets; and recapitalized highly leveraged public and private companies. The KPS investment strategy targets companies with strong franchises that are experiencing operating and financial problems. KPS invests its capital concurrently with a turnaround plan predicated on cost reduction, capital investment and capital availability. Typically, the KPS turnaround plan is accompanied by a financial restructuring of the company’s liabilities. The KPS investment strategy and portfolio companies are described in detail at the firm’s website: www.kpsfund.com.

SOURCE KPS Capital Partners, LP