CHARLOTTE, N.C., Jan. 06, 2021 — Glatfelter Corporation (NYSE: GLT), a leading international supplier of engineered elements, these days announced the signing of a definitive agreement to acquire Georgia-Pacific’s U.S. nonwovens company for $175 million, issue to customary put up-closing invest in rate adjustments.
Glatfelter will acquire Ga-Pacific’s Mount Holly, North Carolina, airlaid producing business and an R&D pilot line for nonwovens products improvement in Memphis, Tennessee, which collectively utilize roughly 150 folks. The Mount Holly facility has a potential of 37,000 metric tons and generates significant-top quality airlaid goods concentrated on wipes and tabletop supplies. The R&D pilot line and extra technical assets will increase ongoing innovation efforts.
“The arrangement to purchase Ga-Pacific’s U.S. nonwovens enterprise even more reinforces our motivation to spend in growth alternatives as component of Glatfelter’s ongoing transformation while also increasing our functioning footprint in the United States,” explained Dante C. Parrini, Chairman and Main Government Officer of Glatfelter. “Our airlaid business enterprise has shipped strong results in the course of an unprecedented 2020. The Mount Holly facility, together with the R&D pilot line, will make it possible for us to continue to make on this achievement and improved provide our consumers.”
Georgia-Pacific’s U.S. nonwovens small business generates once-a-year internet sales and adjusted EBITDA of close to $100 million and $20 million, respectively. Glatfelter expects to notice annual cost synergies of approximately $4 million to $6 million within three years and incur one-time costs of approximately $10 million for transaction service fees and integration.
Glatfelter programs to finance the acquisition via a mixture of income on hand and borrowing underneath its existing revolving credit history facility.
The transaction is issue to customary closing situations, which include receipt of needed regulatory clearances. Credit score Suisse acted as Glatfelter’s money advisor in connection with the transaction, and Shearman & Sterling LLP as its authorized advisor.
Warning Regarding Ahead-Searching Statements
Any statements bundled in this push launch which pertain to potential financial and business enterprise matters are “forward-hunting statements” inside the that means of the safe and sound harbor provisions of the United States Non-public Securities Litigation Reform Act of 1995. The Firm works by using words and phrases these as “anticipates”, “believes”, “expects”, “future”, “intends”, “plans”, “targets”, and similar expressions to determine ahead-hunting statements. Any these kinds of statements are based on the Company’s recent expectations and are matter to a lot of pitfalls, uncertainties and other unpredictable or uncontrollable elements that could bring about foreseeable future final results to differ materially from those expressed in the forward-wanting statements together with, but not constrained to, the impacts of the COVID-19 pandemic, alterations in sector, small business, current market, and financial circumstances, need for or pricing of its products, current market expansion charges and currency trade fees. In light of these pitfalls, uncertainties and other aspects, the ahead-seeking matters talked about in this push release may possibly not come about and readers are cautioned not to spot undue reliance on these ahead-hunting statements. The forward-searching statements communicate only as of the day of this press launch and Glatfelter undertakes no obligation, and does not intend, to update these forward-on the lookout statements to replicate situations or conditions occurring after the date of this push release. Far more details about these elements is contained in Glatfelter’s filings with the U.S. Securities and Exchange Fee, which are offered at www.glatfelter.com.
About Glatfelter Glatfelter is a top world supplier of engineered elements. The Company’s large-high-quality, impressive and customizable solutions are located in tea and single-provide coffee filtration, personal cleanliness and packaging goods as very well as home enhancement and industrial applications. Headquartered in Charlotte, NC, the Company’s annualized net product sales approximate $925 million with prospects in over 100 international locations and roughly 2,500 workers all over the world. Functions incorporate eleven production amenities located in the United States, Canada, Germany, France, the United Kingdom and the Philippines. Supplemental info about Glatfelter may possibly be observed at www.glatfelter.com.
|Ramesh Shettigar||Eileen L. Beck|
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