Glatfelter (GLT), a manufacturer of specialty papers and fiber-based engineered materials, announced that it has signed a definitive agreement to purchase Dresden Papier GmbH from Fortress Paper Ltd. for 160 million euros or about $209 million.
Glatfelter said it expects the acquisition to be immediately accretive to earnings per share by about $0.25 on an annualized basis.
Dresden Papier, based in Heidenau, Germany, is a supplier of nonwoven wallpaper base materials. In 2012, Dresden's revenues were 117 million euros or about $151 million, and Earnings before Interest, Taxes, Depreciation and Amortization or EBITDA were 30 million euros or approximately $38 million. Dresden employs approximately 146 people at its state-of-the-art, 60,000-metric-ton-capacity manufacturing facility in Heidenau, Germany.
Glatfelter noted that it plans to finance the acquisition through a combination of cash on hand and debt. As of December 31, 2012, Glatfelter had a cash balance of $98 million and $345 million available under its revolving credit facility.
The proposed transaction is expected to close during the second quarter of 2013. The transaction is subject to customary closing conditions, including receipt of German and Ukrainian regulatory approvals.
Upon closing, the acquired business will become part of Glatfelter's Composite Fibers business unit, which manufactures fiber-based products for growing global niche markets, including filtration papers for tea and single serve coffee applications, metallized papers, composite laminates, and technical specialties.
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