Glatfelter to Get Georgia-Pacific’s U.S. Nonwovens Business for $175 Million

CHARLOTTE, N.C., Jan. 06, 2021 — Glatfelter Company (NYSE: GLT), a leading international supplier of engineered resources, right now announced the signing of a definitive arrangement to invest in Georgia-Pacific’s U.S. nonwovens small business for $175 million, issue to customary article-closing obtain selling price changes.

Glatfelter will purchase Georgia-Pacific’s Mount Holly, North Carolina, airlaid production business and an R&D pilot line for nonwovens merchandise progress in Memphis, Tennessee, which collectively hire roughly 150 individuals. The Mount Holly facility has a potential of 37,000 metric tons and provides large-high-quality airlaid items targeted on wipes and tabletop supplies. The R&D pilot line and supplemental technological means will improve ongoing innovation endeavours.

“The arrangement to acquire Georgia-Pacific’s U.S. nonwovens small business further more reinforces our dedication to invest in development possibilities as element of Glatfelter’s ongoing transformation though also increasing our running footprint in the United States,” said Dante C. Parrini, Chairman and Chief Govt Officer of Glatfelter. “Our airlaid enterprise has delivered strong outcomes throughout an unprecedented 2020. The Mount Holly facility, along with the R&D pilot line, will permit us to go on to construct on this results and better provide our shoppers.”  

Ga-Pacific’s U.S. nonwovens enterprise generates yearly net gross sales and altered EBITDA of approximately $100 million and $20 million, respectively. Glatfelter expects to comprehend annual value synergies of approximately $4 million to $6 million in just 3 several years and incur a single-time costs of about $10 million for transaction charges and integration.

Glatfelter designs to finance the acquisition as a result of a blend of income on hand and borrowing beneath its existing revolving credit history facility.

The transaction is subject to customary closing circumstances, such as receipt of expected regulatory clearances. Credit score Suisse acted as Glatfelter’s economic advisor in link with the transaction, and Shearman & Sterling LLP as its lawful advisor.

Caution Regarding Forward-On the lookout Statements

Any statements included in this push launch which pertain to future financial and business enterprise issues are “forward-looking statements” within the which means of the risk-free harbor provisions of the United States Personal Securities Litigation Reform Act of 1995. The Business makes use of words these types of as “anticipates”, “believes”, “expects”, “future”, “intends”, “plans”, “targets”, and similar expressions to determine ahead-searching statements. Any this sort of statements are based on the Company’s present-day anticipations and are issue to many hazards, uncertainties and other unpredictable or uncontrollable elements that could lead to long run benefits to vary materially from those expressed in the ahead-on the lookout statements together with, but not restricted to, the impacts of the COVID-19 pandemic, changes in business, business enterprise, sector, and financial problems, demand from customers for or pricing of its goods, market advancement costs and currency exchange prices. In light-weight of these risks, uncertainties and other elements, the ahead-looking issues discussed in this press launch may well not happen and viewers are cautioned not to place undue reliance on these forward-searching statements. The ahead-on the lookout statements communicate only as of the date of this push launch and Glatfelter undertakes no obligation, and does not intend, to update these forward-hunting statements to replicate occasions or instances taking place soon after the day of this press release. Additional facts about these aspects is contained in Glatfelter’s filings with the U.S. Securities and Exchange Fee, which are accessible at www.glatfelter.com.

About Glatfelter Glatfelter is a main world-wide provider of engineered supplies. The Company’s significant-quality, progressive and customizable alternatives are identified in tea and single-provide espresso filtration, personal hygiene and packaging goods as very well as residence advancement and industrial apps. Headquartered in Charlotte, NC, the Company’s annualized internet revenue approximate $925 million with customers in more than 100 nations around the world and somewhere around 2,500 staff all over the world. Functions incorporate eleven production amenities located in the United States, Canada, Germany, France, the United Kingdom and the Philippines. Added info about Glatfelter may possibly be observed at www.glatfelter.com.