Glatfelter concludes sale of Specialty Papers

15.11.2018 − 

At the end of October, P.H. Glatfelter completed the sale of the Specialty Papers (SPBU) business unit to the private-equity company Lindsay Goldberg that had been agreed in mid-August 2018. The acquired activities are to be continued by the new company Pixelle Specialty Solutions founded by Lindsay Goldberg specifically for this purpose. The purchase price set at 360m US$ at the time the contract was signed includes roughly 38m US$ in health-insurance benefits for former SPBU employees; this can still change slightly due to various post-closing terms.

This leaves Glatfelter with cash proceeds of around 323m US$, which are to be used for reducing liabilities, financing acquisitions, and for general corporate purposes. Lindsay Goldberg will also assume roughly 220m US$ in pension obligations for former SPBU employees. In return, the company will receive assets worth a total of approximately 270m US$ from Glatfelter’s existing pension scheme. Both amounts have thus been reduced by roughly 30m against the original agreement.

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