Georgia-Pacific Decided to Sell U.S. Nonwovens Business to Glatfelter

SEATTLE (Scrap Monster): Georgia-Pacific (GP) announced that it has reached an agreement with Charlotte, North Carolina-headquartered supplier of engineered materials Glatfelter towards sale of its U.S. nonwovens business. The transaction, valued at $175 million, is subject to customary closing conditions and necessary regulatory approvals from competition authorities.

The transaction comprises GP’s nonwovens operations at Mt. Holly, North Carolina, which produces airlaid nonwoven material for commercial customers. In addition, it also includes an R&D pilot line for nonwovens product development in Memphis, Tennessee. The combined facilities employ nearly 150 people, all of whom will become part of Glatfelter upon closing of the deal. The U.S. nonwovens business generates annual net sales of approximately $100 million.

The acquisition will be financed through a combination of cash on hand and borrowing under Glatfelter’s existing revolving credit facility. Credit Suisse acted as the financial advisor for the transaction, whereas Shearman & Sterling LLP was the legal advisor.

Earlier in 2018, GP had sold its European nonwovens business, covering nonwovens operations located in Steinfurt, Germany, along with sales offices located in France and Italy, to Glatfelter for a sum of $185 million.

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