Glatfelter to Acquire Georgia-Pacific’s European Nonwovens Business for $185 Million
June 19 2018 - 6:45AM
June 19, 2018 – Glatfelter (NYSE:GLT), a global supplier of
specialty papers and engineered materials, today announced it has
signed a definitive agreement to purchase Georgia-Pacific’s
European nonwovens business (the “Business”) for $185 million,
subject to customary purchase price adjustments.
The proposed transaction includes Georgia-Pacific’s
operations located in Steinfurt, Germany, along with sales offices
located in France and Italy. The Steinfurt facility produces
high-quality airlaid products for the table-top, wipes, hygiene,
food pad, and other nonwoven materials markets, competing in the
marketplace with nonwoven technologies and substrates, as well as
other materials focused primarily on consumer based end-use
applications. The Steinfurt facility is a
state-of-the-art, 32,000-metric-ton-capacity manufacturing facility
that employs approximately 220 people.
“Glatfelter’s agreement to acquire the European nonwovens
business demonstrates our commitment to building leading positions
in global growth markets for engineered materials,” said Dante C.
Parrini, Chairman and Chief Executive Officer of Glatfelter.
“Steinfurt’s products and technologies complement our current
airlaid business very well and the acquisition provides synergistic
capacity increase opportunities and an improved cost structure to
support our ability to serve customers in growing consumer and
industrial markets. From a financial perspective, the
investment provides an attractive return on capital, is immediately
accretive and will deliver attractive EBITDA margins in a growing
market.”
In 2017, the Business generated net sales of $99 million and
EBITDA of $18 million. The Company expects to realize synergies in
excess of approximately $6 million per year within three years, and
expects to incur one-time costs of approximately $7 million for
transaction fees and integration.
Glatfelter plans to finance the acquisition through a
combination of cash on hand and borrowing under its existing
revolving credit facility.
The proposed transaction is subject to customary closing
conditions, including receipt of required regulatory approvals.
Credit Suisse acted as the financial advisor in connection with the
transaction, and Shearman & Sterling LLP as legal advisor. The
closing is expected to occur during the fourth quarter.
Caution Concerning Forward-Looking
Statements
Any statements included in this press release which pertain to
future financial and business matters are “forward-looking
statements” within the meaning of the safe harbor provisions of the
United States Private Securities Litigation Reform Act of
1995. The Company uses words such as “anticipates”,
“believes”, “expects”, “future”, “intends”, “plans”, “targets”, and
similar expressions to identify forward-looking statements.
Any such statements are based on the Company’s current expectations
and are subject to numerous risks, uncertainties and other
unpredictable or uncontrollable factors that could cause future
results to differ materially from those expressed in the
forward-looking statements including, but not limited to: changes
in industry, business, market, and economic conditions, demand for
or pricing of its products, market growth rates and currency
exchange rates. In light of these risks, uncertainties and
other factors, the forward-looking matters discussed in this press
release may not occur and readers are cautioned not to place undue
reliance on these forward-looking statements. The
forward-looking statements speak only as of the date of this press
release and Glatfelter undertakes no obligation, and does not
intend, to update these forward-looking statements to reflect
events or circumstances occurring after the date of this press
release. More information about these factors is contained in
Glatfelter’s filings with the U.S. Securities and Exchange
Commission, which are available at www.glatfelter.com.
About Glatfelter
Glatfelter is a global supplier of specialty papers and
engineered materials, offering innovation, world-class service and
over a century and a half of technical expertise.
Headquartered in York, PA, the Company employs approximately 4,200
people and serves customers in over 100 countries. U.S. operations
include facilities in Arkansas, Pennsylvania and Ohio.
International operations include facilities in Canada, Germany,
France, the United Kingdom and the Philippines, and sales and
distribution offices in the U.S., China and Russia.
Glatfelter’s sales approximate $1.6 billion annually and its common
stock is traded on the New York Stock Exchange under the ticker
symbol GLT. Additional information may be found at
www.glatfelter.com.
Contacts:
Investors:John P. Jacunski(717) 225-2794
Media:Eileen Beck(717) 225-2793
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