Glatfelter, York, Pa., USA, announced this week that it has completed its previously announced acquisition of Concert Industries Corp. from Brookfield Special Situations Management Ltd., an affiliate of Brookfield Asset Management, for C$246.5 million ($235 million), subject to a post-closing working capital adjustment.
Concert is a global 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 and adult incontinence products, specialty wipes, and food pads. Approximately 80% of Concert's sales come from the feminine hygiene market, which is expected to grow at a compound annual rate of approximately 5% for the next four years.
Glatfelter will operate Concert as a third business unit along with its Specialty Papers and Composite Fibers business units. It financed the acquisition through a combination of cash on hand, proceeds from the 7 1/8% unsecured senior notes issued on February 5, and borrowings under its existing revolving credit agreement.
"We are thrilled to add to the Glatfelter family of products another industry-leading global business that sells highly specialized, engineered fiber-based products to niche markets," said George H. Glatfelter II, chairman and CEO. "This acquisition combines the strengths of two highly regarded specialty producers and will build upon our respective relationships with premier global consumer products companies."
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