Glatfelter Corporation, a leading global supplier of engineered materials, has signed a definitive agreement to purchase Georgia-Pacific’s U.S. nonwovens business for $175 million, subject to customary post-closing purchase price adjustments.
Glatfelter will acquire Georgia-Pacific’s Mount Holly, NC, airlaid manufacturing business as well as a research and development pilot line for nonwovens product development in Memphis, TN, which collectively employ approximately 150 people. The Mount Holly facility has a capacity of 37,000 metric tons and produces high-quality airlaid products focused on wipes and tabletop materials. G-P acquired the site through its purchase of Buckeye Technologies. The research and development pilot line and additional technical resources will enhance ongoing innovation efforts.
“The agreement to acquire Georgia-Pacific's U.S. nonwovens business further reinforces our commitment to invest in growth opportunities as part of Glatfelter’s ongoing transformation while also expanding our operating footprint in the U.S.,” says Dante C. Parrini, chairman and CEO of Glatfelter. “Our airlaid business has delivered strong results throughout an unprecedented 2020. The Mount Holly facility, along with the R&D pilot line, will allow us to continue to build on this success and better serve our customers.”
Georgia-Pacific's U.S. nonwovens business generates annual net sales and adjusted EBITDA of approximately $100 million and $20 million, respectively. Glatfelter expects to realize annual cost synergies of approximately $4 million to $6 million within three years and incur one-time costs of approximately $10 million for transaction fees and integration.
Glatfelter purchased G-P's European operation, including manufacturing sites in Steinfurt, Germany, in 2018. The company also has airlaid manufacturing operations in Falkenhagen, Germany, Arkansas and Quebec.
