Glatfelter to Acquire Georgia-Pacific's European Nonwovens Business for $185 Million
June 19 2018 - 7:44AM
YORK, Pa., June 19, 2018 (GLOBE
NEWSWIRE) -- 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
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Glatfelter via Globenewswire
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