Glatfelter has completed the previously announced acquisition of Dresden Papier GmbH from Fortress Paper Ltd. for €160 million (US $210 million) subject to a post-closing working capital adjustment.
Dresden Papier, based in Heidenau (near Dresden), Germany, is a global supplier of nonwoven wallpaper base materials. Nonwoven wallpaper offers superior performance and characteristics such as dry strip-ability, higher tear resistance, and no material shrinkage or expansion when wet. As a result, nonwovens are increasingly the product of choice for wallpaper installers and design professionals in Europe, with significant growth potential in Asia.
“This acquisition adds another industry-leading nonwovens product line to our Composite Fibers business and we believe the global nonwoven wallpaper market will continue to grow at a compound annual growth rate of at least 10 percent,” said Dante C. Parrini, chairman and chief executive officer. “This acquisition will also provide additional operational leverage and growth opportunities for Glatfelter globally, particularly in large markets such as Russia and China, and other developing markets in eastern Europe and Asia.”
Glatfelter financed the acquisition through a combination of cash on hand and borrowings under its existing revolving credit agreement. The acquisition is expected to be immediately accretive to earnings by approximately $0.25 per share on an annualized basis.