Glatfelter to buy German paper manufacturer for $209M
P.H. Glatfelter Co., the York-based manufacturer of paper products, has a definitive agreement to buy German paper company Dresden Papier GmbH from Fortress Paper Ltd. for $209 million, according to Glatfelter.
Dresden Papier, based in Heidenau, Germany, is a manufacturer of nonwoven, wallpaper materials, and supplies many of the largest wallpaper companies. Dresden Papier had revenue of about $151 million last year and income before taxes of $38 million, according to Glatfelter’s statement about the acquisition.
Glatfelter said it will pay for the deal through a combination of cash and debt. It has $98 million in cash and a revolving credit of $345 million. The acquisition could add 25 cents to Glatfelter’s annual per-share income. The deal is expected to close in the second quarter pending approvals from German and Ukrainian governments.
“Glatfelter’s agreement to acquire Dresden Papier demonstrates our commitment to building leading positions in niche global growth markets for specialty papers and fiber-based engineered materials,” said Dante C. Parrini, Glatfelter Chairman and CEO.
Glatfelter trades its shares on the New York Stock Exchange under the ticker symbol GLT. Fortress Paper, Dresden’s Vancouver-based parent, trades its shares on the Toronto Stock Exchange under the ticker symbol FTP.