Xerium Acquires J.J. Plank Corporation for $18 Million
The combined company will have one of the broadest sets of capabilities with respect to spreader rolls, dandy rolls, and tissue embossing rolls in the world.
May 6, 2016 - Xerium Technologies on May 4 announced that it acquired the business of J.J. Plank Corporation, including its Spencer Johnston brand spreader roll line and related family of product lines for $18 million, comprised of $16.25 million in cash at closing, and the rest in future obligations.
Spencer Johnston and the other J.J. Plank divisions supply equipment used in the production of paper, nonwoven fabrics, flexible packaging, tissue converting, and food packaging.
According to Xerium, the combined company will have one of the broadest sets of capabilities with respect to spreader rolls, dandy rolls, and tissue embossing rolls in the world.
“Incorporating Spencer Johnston's and the other divisions' strengths in spreader rolls, dandy rolls, and tissue embossing rolls with our existing portfolio of products is a strategically and financially compelling advancement opportunity,” said Harold Bevis, President and CEO of Xerium. “These product lines will strengthen our product and service offerings, add new customers to our roster, and accelerate revenue diversification.
“Importantly, this acquisition furthers the Company's strategy of realigning its market presence and future sales opportunities by onboarding existing customer references and special-purpose manufacturing assets," Bevis added.
Spencer Johnston and the other J.J. Plank divisions generated 2015 revenue of $18.5 million, and are expected to be immediately accretive.
Including integration and synergies, Xerium expects the acquisition to provide an Adjusted EBITDA contribution in 2016 of $2 to $3 million, excluding transaction related costs. When fully integrated, EBITDA contribution is expected to be $6 million annually, assuming no unexpected changes to market conditions.
Xerium Technologies, Inc. is a leading global provider of industrial consumable products and services. To learn more, please visit www.xerium.com.
SOURCE: Xerium Technologies, Inc.