SWM International Closes Sale of Spotswood, New Jersey Property

Rhea-AI Summary

SWM International has successfully sold its Spotswood, New Jersey facility for approximately $35 million. The net proceeds are earmarked for reducing the company’s debt. This facility closure was part of a strategic transition that began at the end of 2020, where operations were moved to support a new manufacturing technology for key customers. The Spotswood site was previously part of the Engineered Papers segment, with production volumes shifted to other global operations.

Positive

• Sale of Spotswood facility generates approximately $35 million in net proceeds.
• Proceeds will be utilized for debt reduction, improving the company's financial health.
• Successful transition of operations to better support customer needs.

Negative

• None.

Alpharetta, GA, Dec. 10, 2021 (GLOBE NEWSWIRE) -- SWM International (NYSE: SWM) has finalized the sale of its former Spotswood, New Jersey facility to an undisclosed buyer, with net proceeds of approximately $35 million. Net proceeds from the transaction will be used to reduce Company debt. As previously disclosed, the Company closed its Spotswood, NJ facility at the end of 2020 as the Company transitioned to a newly developed manufacturing technology to better support the site’s key customer. Site operations were part of the Company’s Engineered Papers segment, and volumes produced in Spotswood were transitioned to other operations within the Company’s global footprint that supported this new production process.

About SWM:
SWM is a leading global performance materials company, focused on bringing best-in-class innovation, design, and manufacturing solutions to our customers. Our highly engineered films, adhesive tapes, foams, nets, nonwovens, and papers are designed and manufactured using resins, polymers, and natural fibers for a variety of industries and specialty applications. SWM and its subsidiaries manufacture on four continents, conduct business in over 90 countries and employ approximately 5,000 people worldwide. For further information, please visit SWM’s website at www.swmintl.com.

Media Contact:
Mary Gibson
mgibson@swmintl.com
770-569-4328

Investor Relations Contact:
Mark Chekanow
Mchekanow@swmintl.com
770-569-4229

FAQ

What is the significance of SWM's sale of its Spotswood facility?

The sale generates approximately $35 million in net proceeds, which will be used to reduce the company's debt, enhancing its financial stability.

When did SWM close its Spotswood facility?

SWM closed its Spotswood facility at the end of 2020 as part of a strategic transition to new manufacturing technology.

What will SWM do with the proceeds from the Spotswood facility sale?

SWM plans to use the net proceeds from the sale to reduce its debt.

How has SWM transitioned operations after closing the Spotswood site?

After closing the Spotswood site, SWM transitioned the produced volumes to other operations within its global footprint to support a new production process.