YORK, Penn. (News release) -- Glatfelter announced it has entered into a definitive agreement to sell its Specialty Papers Business Unit ("SPBU") on a cash free and debt free basis to Lindsay Goldberg (the "Purchaser") for a total sale price of $360 million.
The sale price includes approximately $320 million of cash proceeds and the assumption by the Purchaser of approximately $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, the Purchaser will assume approximately $250 million of pension liabilities relating to SPBU employees and receive approximately $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.
"The divestiture of our Specialty Papers Business Unit represents a significant milestone for Glatfelter as we continue our transformation toward becoming a leading global engineered materials company. We are focused on enhancing shareholder value by devoting our investments and resources to accelerating the growth potential of our Composite Fibers and Advanced Airlaid Materials business units," said Dante C. Parrini, Chairman and Chief Executive Officer. Mr. Parrini added, "We believe the sale of SPBU to Lindsay Goldberg creates an excellent opportunity for the business and its employees, who have remained steadfast in their dedication to Glatfelter and our customers."
Net cash proceeds from the transaction will be used 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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* An expanding company is looking for a Corporate Industrial Electro-Mechanical Engineer near Allentown, PA. Relocation is available. Do you have a storied list of unique electrical and mechanical engineering skills you're ready to take to the next level? Do you envision yourself in a corporate-level leadership role that your experience finally merits? And do you relish any opportunity to troubleshoot and solve real-time problems, all while designing and installing new services and systems that will not only ensure safety, but also turn a potentially hazardous work environment into a continuously thriving one? If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.
* An expanding company is looking for hands-on Electro Mechanical Maintenance Techs in Conyers, Georgia. Preference will be given to candidates with higher education and additional certificates or training. You must be able to work any shift. Pay is negotiable with excellent perks and benefits. Relocation assistance is available to the right candidate. If you are interested or would like more information, please contact Jim Thompson at: jthompson@taii.com Ph. 678-206-6010 Cell: 404-822-3412.
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