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Ahlstrom retains its building & wind business

28 Jul '16

2 min read

Ahlstrom, a high performance fibre-based materials Company, and Owens Corning, a global company that develops and produces insulation, roofing, and fibreglass composites, have terminated the agreement regarding the planned divestiture of Ahlstrom's building & wind business unit to Owens Corning, following challenges associated with obtaining regulatory clearance in Germany for the transaction.

Ahlstrom will continue to operate and develop the building & wind business unit as before and it will be reported as part of the filtration & performance segment. In 2015, net sales of building & wind business unit was €83.5 million, and the adjusted operating profit €5.9 million. In January-March 2016, net sales amounted to €23.5 million and the adjusted operating profit to €2.1 million.

Marco Levi, president & CEO of Ahlstrom said, “In 2015 we were approached by Owens Corning to acquire the building & wind business unit and engaged in exclusive negotiations with them. Following the unexpected challenges with the German competition authorities, and after careful consideration, we have decided to keep the business intact as part of the Ahlstrom portfolio of innovative fibre-based materials. The performance of the building & wind business unit, as that of the entire Ahlstrom Group, has clearly improved since negotiations were initiated and the business is today contributing positively to our profitability and cash flow. We are fully committed to serving our customers and reinforcing the unit's competitive position. The business will contribute to our strategic goals of adjusted operating profit margin above 8 per cent by 2018 and maintaining gearing below 100 per cent.” (GK)

Fibre2fashion News Desk - India

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