Glatfelter to Acquire Jacob Holm for an Enterprise Value of ~$308 Million
Glatfelter Corporation (NYSE: GLT) has announced a definitive agreement to acquire Jacob Holm for an enterprise value of approximately $308 million, including debt extinguishment. This acquisition enhances Glatfelter's presence in spunlace nonwoven fabrics, expanding its reach into critical cleaning, personal care, and medical applications. Jacob Holm generated around $400 million in revenue and $45 million in EBITDA for the last twelve months, benefiting from pandemic-related demand. Glatfelter expects annual cost synergies of $20 million within two years following the acquisition.
- Acquisition value of approximately $308 million enhances Glatfelter's market position.
- Jacob Holm's $400 million revenue and $45 million EBITDA bolster Glatfelter's financial metrics.
- Expected annual cost synergies of $20 million within 24 months contribute to financial health.
- Jacob Holm's financial performance includes an estimated $10-$15 million COVID-related demand boost, indicating potential revenue normalization.
- Transaction completion is subject to customary conditions and regulatory clearances, posing uncertainty.
Acquisition Adds Scale and Strengthens Glatfelter’s Position as a Leading Global Engineered Materials Company
CHARLOTTE, N.C., July 22, 2021 (GLOBE NEWSWIRE) -- Glatfelter Corporation (NYSE: GLT), a leading global supplier of engineered materials, today 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
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 world-wide. 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
“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,” said Dante C. Parrini, Chairman and Chief Executive Officer of Glatfelter.
The transaction is subject to the satisfaction of customary closing conditions, including receipt of required regulatory clearances, and is expected to be completed later this year. Glatfelter has obtained committed financing for this transaction from HSBC Securities (USA) Inc. and intends to fund the acquisition with unsecured debt. Glatfelter will also pursue extending the maturity date of its syndicated revolving credit facility.
Credit Suisse acted as Glatfelter’s financial advisor in connection with the transaction and Shearman & Sterling LLP as its legal advisor. Additional details on Jacob Holm and the pending transaction will be provided during Glatfelter’s Second Quarter Earnings call on August 3, 2021.
About Glatfelter
Glatfelter is a leading global supplier of engineered materials. Glatfelter’s high-quality, innovative and customizable solutions are found in tea and single-serve coffee filtration, personal hygiene and packaging products as well as home improvement and industrial applications. Headquartered in Charlotte, NC, Glatfelter’s annualized net sales approximate
Forward Looking Statements
This communication contains certain forward-looking statements within the meaning of the federal securities laws with respect to the Transaction, including statements regarding the benefits of the transaction, the anticipated timing of the transaction and the benefits Glatfelter expects to derive from the transaction. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “forecast,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions (including the negative versions of such words or expressions).
Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including, but not limited to: (i) the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of Glatfelter’s securities; (ii) the failure to satisfy the conditions to the consummation of the transaction; (iii) the effect of the announcement or pendency of the transaction on the business relationships, performance, and businesses generally of Glatfelter and Jacob Holm; (iv) risks that the transaction disrupts current plans of Glatfelter and potential difficulties in retaining Jacob Holm employees as a result of the transaction; (v) the outcome of any legal proceedings that may be instituted against Glatfelter related to the transaction; (vi) the price of Glatfelter’s securities, including as a result of volatility resulting from changes in the competitive industries in which Glatfelter and Jacob Holm operate, variations in performance across competitors, changes in laws and regulations affecting Glatfelter’s and Jacob Holm’s businesses and changes in Glatfelter’s capital structure; and (vii) Glatfelter’s ability to implement business plans, forecasts, and other expectations after the closing of the transaction, and identify and realize additional opportunities. The foregoing list of factors is not exhaustive. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and Glatfelter assumes no obligation and, except as required by law, does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. More information about these factors is contained in Glatfelter’s filings with the Securities and Exchange Commission, which are available at www.glatfelter.com. Glatfelter gives no assurance that it will achieve its expectations.
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