Xerium to Acquire J.J. Plank Corporation, Maker of Spencer Johnston Spreader Rolls, Advancing Strategy in High-Growth Market ...
May 04 2016 - 4:41PM
Business Wire
- Expands rolls product offering and
service capabilities
- Diversifies customer base into tissue
embossing, flexible packaging and nonwoven production
- Positions Xerium to be one of the
leading global suppliers for spreader rolls, tissue embossing
rolls, and dandy rolls
- Post synergy, pro-forma EBITDA
contribution of $6 million
- Immediately de-leverages the company,
on a pro-forma basis
Xerium Technologies, Inc. (NYSE:XRM), a leading global provider
of industrial consumable products and services, today announced
that it has acquired the business of J.J. Plank Corporation,
including its Spencer Johnston brand spreader roll line and related
family of product lines for $18 million, comprised of $16.25
million in cash at closing, and the rest in future obligations.
Spencer Johnston and the other J.J. Plank divisions supply
equipment used in the production of paper, nonwoven fabrics,
flexible packaging, tissue converting, and food packaging. The
addition of these product lines will add strength and diversity to
Xerium’s products, customers, and markets served. The combined
company will have one of the broadest sets of capabilities with
respect to spreader rolls, dandy rolls, and tissue embossing rolls
in the world.
The transaction furthers Xerium’s strategic plan to expand into
product categories with the strongest growth opportunities. Through
the acquisition, Xerium will expand its current product offerings
and service capabilities, its markets served, and strengthen its
financial profile and grow its customer base.
Harold Bevis, President and CEO of Xerium Technologies, Inc.,
said, “Incorporating Spencer Johnston’s and the other divisions'
strengths in spreader rolls, dandy rolls, and tissue embossing
rolls with our existing portfolio of products is a strategically
and financially compelling advancement opportunity. These product
lines will strengthen our product and service offerings, add new
customers to our roster, and accelerate revenue diversification.
Importantly, this acquisition furthers the Company’s strategy of
realigning its market presence and future sales opportunities by
onboarding existing customer references and special-purpose
manufacturing assets.”
Bevis continued, “The acquisition is expected to produce
post-synergy Adjusted EBITDA of $6 million, which will bolster the
company’s de-leveraging efforts and immediately improve Xerium’s
leverage ratios on a pro-forma basis.”
Spencer Johnston and the other J.J. Plank divisions generated
2015 revenue of $18.5 million, and are expected to be immediately
accretive. Including integration and synergies, Xerium expects the
acquisition to provide an Adjusted EBITDA contribution in 2016 of
$2 to $3 million, excluding transaction related costs. When fully
integrated, EBITDA contribution is expected to be $6 million
annually, assuming no unexpected changes to market conditions.
ABOUT XERIUM
TECHNOLOGIES
Xerium Technologies, Inc. (NYSE:XRM) is a leading global
provider of industrial consumable products and
services. Xerium, which operates around the world under a
variety of brand names, utilizes a broad portfolio of patented and
proprietary technologies to provide customers with tailored
solutions and products integral to production, all designed to
optimize performance and reduce operational costs. With 30
manufacturing facilities in 13 countries around the
world, Xerium has approximately 3,000 employees.
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ICR, Inc.Michael Callahan, 203-682-8311orXerium Technologies,
Inc.Cliff Pietrafitta, 919-526-1444
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