Glatfelter Completes Buy of NewPage Carbonless Business
April 3, 2006 (Press Release) - Glatfelter said that it completed its previously announced acquisition of NewPage Corporation's carbonless business operations, based in Chillicothe and Fremont, Ohio, for $80 million in cash plus an estimated working capital adjustment of $1.8 million, subject to certain post-closing adjustments. The acquired business had revenues of approximately $440 million in 2005 and employs about 1,700 people. These facilities will operate as part of the Printing & Carbonless Papers Division of Glatfelter's Specialty Papers Business Unit.
"The completion of this transaction marks a significant milestone in our vision to become the global supplier of choice in Specialty Papers and Engineered Products," said George H. Glatfelter II, Chairman and Chief Executive Officer. "A comprehensive program is underway to integrate these assets into Glatfelter's Specialty Papers business. We look forward to building a powerful specialty platform around the Chillicothe and Fremont facilities to better serve our customers and build greater value for shareholders."
The Company also announced it entered into a new $300 million senior credit facility consisting of a $200 million revolver and a $100 million term loan. Proceeds from the facility will be used to refinance its existing revolving credit facility, finance recently announced acquisitions and for general corporate purposes. Credit Suisse Securities (USA) LLC and PNC Capital Markets LLC are serving as joint lead arrangers and book runners. Credit Suisse, Cayman Islands Branch and PNC Bank, National Association are providing the initial funding commitments.