Glatfelter to buy out J. R. Crompton's wet laid plant

17 Mar '06

3 min read

Glatfelter (GLT) announced two separate transactions to acquire certain assets of J. R. Crompton Limited, a global supplier of wet laid nonwoven products based in Manchester, United Kingdom.

Under the terms of the first transaction, Glatfelter today acquired Crompton's Lydney Mill, located in Gloucestershire, United Kingdom, for GBP37.5 million (US $65.1million). The facility employs about 240 people and had 2005 revenues of approximately GBP43 million (US $75 million).

“This acquisition is in the center of our strike zone,” said George H. Glatfelter, II, Chairman and Chief Executive Officer. “It represents an exceptional opportunity to accelerate the growth of our wetlaid nonwoven products business."

"Additionally, it expands our geographic footprint in the United Kingdom, Asia, and the Americas, complements our European operations, and supports our vision of becoming the global supplier of choice in specialty papers and engineered products.”

Mr. Glatfelter stated, “The Lydney assets are an ideal fit with Glatfelter's wet laid nonwoven business. Our shareholders will benefit from this acquisition that is expected to be accretive to earnings, exceeds the company's cost of capital, and is focused on a strategic market with attractive growth potential. This purchase, when coupled with our recently announced acquisition of the Carbonless Papers business of New Page Corporation, generates an exciting new platform for creation of shareholder value.”

More Textiles News - United States Of America...