Glatfelter to Acquire Concert Industries for C$237 Million
Jan. 5, 2010 - Glatfelter today said that it has signed a definitive agreement to purchase Concert Industries Corp. from Brookfield Special Situations Management Limited, an affiliate of Brookfield Asset Management Inc. for Canadian $246.5 million (U.S.$235 million).
Concert is a global supplier of highly absorbent cellulose-based airlaid non-woven materials, used to manufacture a diverse range of consumer and industrial products for global end-use markets, including feminine hygiene and adult incontinence products, specialty wipes and food pads. Approximately 80% of Concert’s sales come from the feminine hygiene market, Glatfelter said
In 2009, Concert’s revenues are estimated at approximately C$233 million (U.S.$203 million). The company employs about 600 people at its two state-of-the-art facilities in Gatineau, Quebec, Canada and Falkenhagen, Brandenburg, Germany.
“We view Concert as a natural fit for our business and right in line with our growth strategy,” said George H. Glatfelter II, chairman and CEO of Glatfelter.
"Concert participates in markets that are adjacent to markets we currently serve. It utilizes technologies that are familiar to us and broadens our relationship with premier global consumer products companies. In addition, Concert will create additional growth opportunities globally for Glatfelter, particularly in developing markets such as Asia, Central and Eastern Europe and South America,” Glatfelter added.
Founded in 1993, Concert is a recognized technology and product innovation leader in technically demanding segments of the airlaid market, most notably feminine hygiene, with the majority of its production technology and equipment being less than 10 years old. Its customers include blue-chip, multinational consumer product companies such as The Procter & Gamble Company, Johnson & Johnson, SCA and Kimberly-Clark.
Glatfelter said that it plans to finance the acquisition through a combination of cash on hand and debt. As of November 30, 2009, Glatfelter had a cash balance of $136 million and $194 million available under its revolving credit facility.
Glatfelter expects the proposed deal to close by the end of the first quarter of 2010.
Upon closing, Glatfelter plans to operate Concert as a third business unit along with Specialty Papers and Composite Fibers.