Glatfelter, York, Pa., USA, a producer of specialty papers and engineered paper products, this week announced that it will purchase Concert Industries Corp. from Brookfield Special Situations Management, an affiliate of Brookfield Asset Management (Toronto, Ont., Canada) for C$246.5 million ($235 million). Concert, with two facilities in Gatineau, Que., Canada, and Falkenhagen, Brandenburg, Germany, is a supplier of absorbent cellulose-based airlaid non-woven materials used to manufacture a diverse range of consumer and industrial products for global end-use markets, including feminine hygiene (about 80% of its sales) and adult incontinence products, specialty wipes, and food pads. After closing of the transaction, expected by the end of the first quarter, Glatfelter plans to operate Concert as a third business unit along with Specialty Papers and Composite Fibers. Glatfelter plans to finance the acquisition through a combination of cash on hand and debt. As of November 30, the company had a cash balance of $136 million and $194 million available under its revolving credit facility.
Concert, which employs about 600 people, recently invested some $70 million to install a new line at its Falkenhagen facility, increasing its annual rated capacity by 18,000 metric tons to a total of 84,000 metric tons. The new line successfully commenced commercial production during the fourth quarter of 2009, and is expected to ramp up significantly in the 2010-2011 period.
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