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Glatfelter To Sell Specialty Papers Business To Lindsay Goldberg For $360 Mln

Glatfelter (GLT) said it agreed to sell its Specialty Papers Business Unit or "SPBU" on a cash free and debt free basis to Lindsay Goldberg for a total sale price of $360 million. The sale price includes about $320 million of cash proceeds and the assumption by the Purchaser of about $40 million of retiree healthcare liabilities.

The purchase price is subject to a customary working capital adjustment mechanism, as well as an adjustment for the retiree healthcare liabilities that the Purchaser will assume.

In addition, Lindsay Goldberg will assume about $250 million of pension liabilities relating to SPBU employees and receive about $300 million of related assets from Glatfelter's existing pension plan. The pension liability remaining with Glatfelter will continue to be significantly overfunded and no cash contributions are expected for the foreseeable future. Net sales for SPBU for the 12 months ended June 30, 2018, were approximately $783 million.

Glatfelter said that it will use net cash proceeds from the transaction to pay down debt, to fund the previously announced acquisition of Georgia-Pacific's European nonwovens business, and for general corporate purposes.

The transaction is expected to close during the fourth quarter of 2018, subject to satisfaction of customary closing conditions.

As announced in February, the Glatfelter Board of Directors and management team commenced a review of potential strategic alternatives for the Specialty Papers business unit as part of their ongoing commitment to maximizing shareholder value. This definitive agreement represents the successful conclusion of that review process.

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