09.11.24
Charlotte, NC
www.glatfelter.com
2023 Nonwovens Sales: $1.4 billion
Key Personnel
Thomas Fahnemann, chief executive officer; Ramesh Shettigar, senior vice president, chief financial officer and treasurer; Boris Illetschko, chief operating officer
Locations
American Facilities: Charlotte, NC; Asheville, NC; Mount Holly, NC; Fort Smith, AR; Gainesville, GA; York, PA; Memphis, TN; Old Hickory, TN; Gatineau, QC; Buenos Aires, Argentina; San José, Costa Rica; Mexico City, Mexico
European Facilities: Scaër, France; Soultz, France; Dresden, Germany; Falkenhagen, Germany; Gernsbach, Germany; Steinfurt, Germany; Milan, Italy; Moscow, Russia; Asturias, Spain; Basel, Switzerland; Zug, Switzerland; Caerphilly, U.K.; Lydney, U.K.
Asia Pacific Facilities: Suzhou, China; Shanghai, China; Lanao del Norte, Philippines; Tokyo, Japan; Seoul, Korea; Kuala Lumpur, Malaysia
In February, Glatfelter, a manufacturer of airlaid, spunlace and wetlaid nonwovens, entered into a definitive agreement with Berry Global, the world’s largest nonwovens producer, to merge and form a leading, publicly traded company, which will be known as Magnera. With a focus on innovation, operational excellence and strategic market penetration, Magnera will have the broadest global product offering in high-growth markets for both polymer and fiber-based product applications, according to executives.
Curt Begle, president of Berry’s Health Hygiene & Specialties Division, who will lead Magnera as CEO, says, “Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we will develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions will solve end-users’ problems, every day.”
Following the deal, Berry shareholders will control 90% of the company. Combined revenues will be approximately $3.6 billion.
Glatfelter, as the world’s largest manufacturer of airlaid nonwovens, counts wood-based pulp and cellulose as its key raw materials, while a large portion of Berry’s output is focused on spunmelt nonwovens for healthcare and hygiene applications, which are largely polypropylene-based.
“The uniting of our organizations creates a premier nonwovens supplier and a global leader in specialty materials with the talent, technologies, scale and footprint to deliver commercial and operational excellence and a wide range of solutions for our customers,” says Glatfetler CEO Thomas Fahnemann. “Our combined company is scaled to accelerate innovation and leverage our intellectual property over a large, worldwide commercial platform and is well positioned to deliver substantial shareholder value.”
In 2023, Glatfelter’s performance was highlighted by several meaningful accomplishments where it eliminated costs from the business, refinanced the company’s debt, restructured the leadership team and optimized its portfolio.
“We also made significant progress closing the price-cost gap and implementing operational improvements that are enabling us to deliver margin improvements,” Fahnemann adds. “While these actions are improving our financial performance, we expect the full realization of benefits from our turnaround strategy when the market substantially recovers. We remain encouraged by the word that lies ahead, knowing the strategy is working and therefore, we are cautiously optimistic about our full year guidance despite the challenging business environment.”
Sales in 2023 were largely impacted by lower selling prices from cost pass-through arrangements and lower energy surcharges in Europe. Overall sales decreased from $1.49 billion to $1.38 billion during the year. Airlaid sales represented $586.5 million in sales. The technology continues to be an innovation leader in technical demanding segments and the largest market served by Glatfelter remains feminine hygiene, representing 37% of sales, but other markets include wipes, tabletop applications and other segments of the absorbent hygiene market.
Sales in the Composite Fibers segment, which includes food and beverage and wallcovering applications, accounted for $483.5 million of sales, while spunlace nonwovens sales accounted for $317.9 million. Glatfelter entered the spunlace market in 2021 through the purchase of Jacob Holm Industries and has since focused on improving profitability in the segment. These efforts have proven successful with the unit generating about $9 million in adjusted EBITDA in 12 months.
While wipes, encompassing many different segments and customers, continues to dominate spunlace sales, Glatfelter is targeting some materials to the hygiene market. Its GlatfPure topsheets are made from plant-based fibers using advanced spunlace technology to bring comfort, sustainability and customization to hygiene products. Initially made in Soultz, France, Glatfelter is expanding production of this material to its site in Asheville, NC.
www.glatfelter.com
2023 Nonwovens Sales: $1.4 billion
Key Personnel
Thomas Fahnemann, chief executive officer; Ramesh Shettigar, senior vice president, chief financial officer and treasurer; Boris Illetschko, chief operating officer
Locations
American Facilities: Charlotte, NC; Asheville, NC; Mount Holly, NC; Fort Smith, AR; Gainesville, GA; York, PA; Memphis, TN; Old Hickory, TN; Gatineau, QC; Buenos Aires, Argentina; San José, Costa Rica; Mexico City, Mexico
European Facilities: Scaër, France; Soultz, France; Dresden, Germany; Falkenhagen, Germany; Gernsbach, Germany; Steinfurt, Germany; Milan, Italy; Moscow, Russia; Asturias, Spain; Basel, Switzerland; Zug, Switzerland; Caerphilly, U.K.; Lydney, U.K.
Asia Pacific Facilities: Suzhou, China; Shanghai, China; Lanao del Norte, Philippines; Tokyo, Japan; Seoul, Korea; Kuala Lumpur, Malaysia
In February, Glatfelter, a manufacturer of airlaid, spunlace and wetlaid nonwovens, entered into a definitive agreement with Berry Global, the world’s largest nonwovens producer, to merge and form a leading, publicly traded company, which will be known as Magnera. With a focus on innovation, operational excellence and strategic market penetration, Magnera will have the broadest global product offering in high-growth markets for both polymer and fiber-based product applications, according to executives.
Curt Begle, president of Berry’s Health Hygiene & Specialties Division, who will lead Magnera as CEO, says, “Magnera’s purpose is to better the world with new possibilities made real. By continuously co-creating and innovating with our partners, we will develop original material solutions that make a brighter future possible. With a breadth of technologies and a passion for what we create, Magnera’s solutions will solve end-users’ problems, every day.”
Following the deal, Berry shareholders will control 90% of the company. Combined revenues will be approximately $3.6 billion.
Glatfelter, as the world’s largest manufacturer of airlaid nonwovens, counts wood-based pulp and cellulose as its key raw materials, while a large portion of Berry’s output is focused on spunmelt nonwovens for healthcare and hygiene applications, which are largely polypropylene-based.
“The uniting of our organizations creates a premier nonwovens supplier and a global leader in specialty materials with the talent, technologies, scale and footprint to deliver commercial and operational excellence and a wide range of solutions for our customers,” says Glatfetler CEO Thomas Fahnemann. “Our combined company is scaled to accelerate innovation and leverage our intellectual property over a large, worldwide commercial platform and is well positioned to deliver substantial shareholder value.”
In 2023, Glatfelter’s performance was highlighted by several meaningful accomplishments where it eliminated costs from the business, refinanced the company’s debt, restructured the leadership team and optimized its portfolio.
“We also made significant progress closing the price-cost gap and implementing operational improvements that are enabling us to deliver margin improvements,” Fahnemann adds. “While these actions are improving our financial performance, we expect the full realization of benefits from our turnaround strategy when the market substantially recovers. We remain encouraged by the word that lies ahead, knowing the strategy is working and therefore, we are cautiously optimistic about our full year guidance despite the challenging business environment.”
Sales in 2023 were largely impacted by lower selling prices from cost pass-through arrangements and lower energy surcharges in Europe. Overall sales decreased from $1.49 billion to $1.38 billion during the year. Airlaid sales represented $586.5 million in sales. The technology continues to be an innovation leader in technical demanding segments and the largest market served by Glatfelter remains feminine hygiene, representing 37% of sales, but other markets include wipes, tabletop applications and other segments of the absorbent hygiene market.
Sales in the Composite Fibers segment, which includes food and beverage and wallcovering applications, accounted for $483.5 million of sales, while spunlace nonwovens sales accounted for $317.9 million. Glatfelter entered the spunlace market in 2021 through the purchase of Jacob Holm Industries and has since focused on improving profitability in the segment. These efforts have proven successful with the unit generating about $9 million in adjusted EBITDA in 12 months.
While wipes, encompassing many different segments and customers, continues to dominate spunlace sales, Glatfelter is targeting some materials to the hygiene market. Its GlatfPure topsheets are made from plant-based fibers using advanced spunlace technology to bring comfort, sustainability and customization to hygiene products. Initially made in Soultz, France, Glatfelter is expanding production of this material to its site in Asheville, NC.
