Glatfelter Corporation announced that it has entered into a definitive agreement to acquire Jacob Holm, a global leading manufacturer of premium quality spunlace nonwoven fabrics for critical cleaning, high-performance materials, personal care, hygiene and medical applications, for an enterprise value of approximately $308 million including the extinguishment of debt. The deal is subject to post-closing adjustments.

Jacob Holm offers high-performing and innovative spunlace nonwoven technologies and advanced fiber-based sustainable solutions that will meaningfully increase Glatfelter’s diversification into attractive and complementary segments serving the growing wipes, healthcare and hygiene categories.

With the acquisition of Jacob Holm, Glatfelter will acquire four additional manufacturing facilities and six sales offices located in the Americas, Europe and Asia, and approximately 800 employees worldwide. Jacob Holm’s broad product offerings and blue-chip customer base will expand Glatfelter’s portfolio to include surgical drapes and gowns, wound care, face masks, facial wipes and cosmetic masks. The acquisition of Jacob Holm’s Sontara business, a leading brand of finished products for critical cleaning wipes and medical apparel, will also enhance Glatfelter’s technological capabilities.

Jacob Holm generated approximately $400 million in revenue and about $45 million of EBITDA on an LTM basis as of June 30, 2021, supported by strong pandemic tailwinds. Glatfelter believes Jacob Holm’s June LTM results include a benefit from Covid-related demand estimated to be between $10 million and $15 million of EBITDA. Glatfelter expects to realize annual cost synergies of approximately $20 million within 24 months of closing and is committed to deleveraging its balance sheet following the consummation of this transaction. 

“Today’s announcement represents another significant step forward in Glatfelter’s transformation. The combination of Jacob Holm’s quality spunlace and advanced fiber products along with Glatfelter’s industry-leading airlaid and composite fibers products will provide a best-in-class suite of nonwovens technologies, applications, and expertise to serve customers’ growing global demand. By acquiring Jacob Holm, we will further diversify our nonwovens and substrate offerings and enhance our overall innovation capabilities,” says Dante C. Parrini, chairman and chief executive officer of Glatfelter.

Martin Mikkelsen, CEO of Jacob Holm, comments: “We are excited about the prospects and possibilities this combination will present for the combined company and look forward to taking the next step of this new journey. We are pleased to have identified a home for the business with shared values, the proven capability to grow businesses and a clear view to supporting the next growth phase prepared by the Jacob Holm management team."

This isn't the first acquisition for Glatfelter this year. In May the company completed the acquisition of Georgia-Pacific’s U.S. nonwovens business for $175 million. Glatfelter also purchased G-P's European nonwovens business in 2018.

Jacob Holm, meanwhile, is in the midst of a significant expansion program that will add a reported 500 million square meters to its global output. The project, called Project Boost by the company, was announced last June and is expected to be complete by the end of next year. It will impact virtually all of Jacob Holm's manufacturing sites.