Glatfelter Completes Acquisition of Electrical Papers Producer
Glatfelter (NYSE:GLT) announced that today it completed the previously announced acquisition of Spezialpapierfabrik Oberschmitten GmbH (SPO) from FINSPO Beteiligungs-GmbH for EUR8.5 million (approximately U.S.$11 million).
SPO’s plant is located near Frankfurt, Germany. Its primary electrical products and applications include highly technical papers for a wide range of capacitors used in consumer and industrial products; insulation papers for cables and transformers; and materials for industrial power inverters, electromagnetic current filters and electric rail traction. SPO also produces glassine products, which are used in cosmetics packaging, food packaging, and pharmaceutical dosage bags.
The acquisition of SPO broadens Glatfelter’s existing product lines for the electrical market. This acquisition also complements Glatfelter’s previously announced partnership with Dreamweaver International to develop and manufacture lithium-ion battery separators, which utilize Glatfelter’s capabilities and expertise in making advanced fiber-based engineered materials. SPO will operate as part of Glatfelter’s Composite Fibers business unit.
“We are excited by the completion of this acquisition and look forward to delivering to SPO’s customers on our commitment to superior product quality and customer service,” said Dante C. Parrini, Chairman and Chief Executive Officer. “I believe this acquisition will further our Composite Fibers business unit’s strategy of capitalizing on the fast-growing electrical market by expanding our electrical papers product platform. I am also pleased to welcome SPO’s 193 employees to our organization.”
Glatfelter financed the acquisition through a combination of cash on hand and borrowings under its existing revolving credit agreement. The addition of SPO is expected to be $0.03 to $0.05 accretive to earnings per share in 2015 excluding one-time acquisition and integration costs. The Company expects to incur approximately $2 million to $3 million of one-time acquisition and integration costs.
Caution Concerning Forward-Looking Statements
Any statements included in this press release which pertain to future financial and business matters are “forward-looking statements” within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. The Company uses words such as “anticipates”, “believes”, “expects”, “future”, “intends” and similar expressions to identify forward-looking statements. Any such statements are based on management’s current expectations and are subject to numerous risks, uncertainties and other unpredictable or uncontrollable factors that could cause future results to differ materially from those expressed in the forward-looking statements including, but not limited to: changes in industry, business, market, political and economic conditions in the U.S. and other countries in which the Company does business, demand for or pricing of its products, changes in tax legislation, governmental laws, regulations and policies, initiatives of regulatory authorities, technological changes and innovations, market growth rates, and cost reduction initiatives. In light of these risks, uncertainties and other factors, the forward-looking matters discussed in this press release may not occur and readers are cautioned not to place undue reliance on these forward-looking statements. The forward-looking statements speak only as of the date of this press release and Glatfelter undertakes no obligation, and does not intend, to update these forward-looking statements to reflect events or circumstances occurring after the date of this press release. More information about these factors is contained in Glatfelter’s filings with the U.S. Securities and Exchange Commission, which are available at www.glatfelter.com.
Celebrating its 150th anniversary in 2014, Glatfelter is a global supplier of specialty papers and fiber-based engineered materials, offering innovation, technical expertise, and world-class service. Headquartered in York, PA, U.S. operations include facilities in Spring Grove, PA and Chillicothe and Fremont, OH. International operations include facilities in Canada, Germany, France, the United Kingdom and the Philippines, and sales and distribution offices in Russia and China. Glatfelter’s sales approximate $1.8 billion annually and its common stock is traded on the New York Stock Exchange under the ticker symbol GLT. Additional information may be found at www.glatfelter.com.
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