Glatfelter to acquire Georgia-Pacific’s European nonwovens business for $185 Million
Glatfelter, a global supplier of specialty papers and engineered materials, has signed a definitive agreement to purchase Georgia-Pacific’s European nonwovens business for $185 million.
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.