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Glatfelter Announces The Purchase of J. R. Crompton Assets.

YORK, Pa. -- Glatfelter, (NYSE:GLT) announced today two separate transactions to acquire certain assets of J. R. Crompton Limited, a global supplier of wet laid nonwoven products based in Manchester, United Kingdom.

Under the terms of the first transaction, Glatfelter today acquired Crompton's Lydney Mill, located in Gloucestershire, United Kingdom, for GBP 37.5 million (US $65.1 million). The facility employs about 240 people and had 2005 revenues of approximately GBP 43 million (US $75 million).

"This acquisition is in the center of our strike zone," said George H. Glatfelter, II, Chairman and Chief Executive Officer. "It represents an exceptional opportunity to accelerate the growth of our wet laid nonwoven products business. Additionally, it expands our geographic footprint in the United Kingdom, Asia, and the Americas, complements our European operations, and supports our vision of becoming the global supplier of choice in specialty papers and engineered products."

Mr. Glatfelter stated, "The Lydney assets are an ideal fit with Glatfelter's wet laid nonwoven business. Our shareholders will benefit from this acquisition that is expected to be accretive to earnings, exceeds the company's cost of capital, and is focused on a strategic market with attractive growth potential. This purchase, when coupled with our recently announced acquisition of the Carbonless Papers business of New Page Corporation, generates an exciting new platform for creation of shareholder value."

The Lydney mill produces a broad portfolio of wet laid nonwoven products, including tea and coffee filter papers, clean room wipes, lens tissue, dye filter paper, double-sided adhesive tape substrates and battery grid pasting tissue.

"This mill initially will operate as a standalone business and, together with our European mills, will form a new Composite Fibers business unit," said Mr. Glatfelter. "As the wet laid fiber and papers markets continue to evolve, this new global organization will enable us to maximize growth and profitability in the face of alternative substrate technologies."

Glatfelter also announced that it has signed an agreement to purchase Crompton's Simpson Clough Mill, located in Lancashire, United Kingdom, and other related assets for GBP 12.5 million (US $21.7 million), subject to regulatory approval. The mill employs about 95 people and had 2005 revenues of approximately GBP 16.2 million (US $28 million). The Simpson Clough facility also manufactures a wide variety of wet laid, nonwoven products.

"The purchase of this facility and the expertise of its employees will provide additional capacity and capabilities to better serve the global market," said Mr. Glatfelter.

This press release is available in the "News Releases" subsection of the "Investor Relations" section of the Company's web site, www.glatfelter.com.

About Glatfelter

Headquartered in York, Pennsylvania, Glatfelter is a global manufacturer of specialty papers and engineered products. U.S. operations include facilities in Spring Grove, Pennsylvania and Neenah, Wisconsin. In addition, Glatfelter recently announced a definitive agreement to purchase facilities in Chillicothe and Freemont, Ohio. International operations include facilities in Germany, France, United Kingdom and the Philippines and a representative office in China. Glatfelter's common stock is traded on the New York Stock Exchange under the ticker symbol GLT.

Caution Concerning Forward-Looking Statements This document includes certain "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Although the Company makes such statements based on assumptions that it believes to be reasonable, there can be no assurance that actual results will not differ materially from the Company's expectations. Actual results may differ materially from these expectations due to changes in, among others, industry conditions, demand for or pricing of its products, circumstances surrounding the former Ecusta Division, and global political, economic, business, competitive, market, and tax legislation; acquisition integration risk, orderly closure of the Neenah facility; successful transition of products from the Neenah facility to the Chillicothe facilities; continued successful execution of the North American Restructuring Program and the EURO Program, growth strategies and cost reduction initiatives; successful execution of the Timberland Strategy with acceptable market conditions; and other regulatory factors. More information about these factors is contained in Glatfelter's filings with the U.S. Securities and Exchange Commission.
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Publication:Business Wire
Date:Mar 13, 2006
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