US' Glatfelter completes acquisition of Jacob Holm

The addition of Jacob Holm will meaningfully increase Glatfelter’s scale and diversification into attractive and complementary product categories with high-performing and innovative spunlace nonwoven technologies and advanced plant-based sustainable solutions serving the growing wipes, critical cleaning, healthcare and hygiene categories. Glatfelter has acquired four additional manufacturing sites, one converting operation, and six sales offices located in the Americas, Europe, and Asia, and approximately 760 employees worldwide, Glatfelter said in a press release.

Jacob Holm generated $401 million of net sales and $42.5 million of adjusted EBITDA for the twelve-month period ended June 30, 2021. Glatfelter believes these results included a benefit from COVID-related demand estimated to be between $10 million and $15 million of adjusted EBITDA. This acquisition is expected to yield approximately $20 million of annual synergies within 24 months. Credit Suisse acted as Glatfelter’s financial advisor in connection with the transaction, and Shearman & Sterling LLP as its legal advisor. Financing of this transaction for Glatfelter was led by HSBC Securities (USA).

“We are very pleased to be closing on the acquisition and adding Jacob Holm’s premium quality spunlace and advanced fibre products to Glatfelter’s portfolio of industry-leading airlaid and composite fibres products. Jacob Holm’s broad product offerings, including the Sontara brand, and blue-chip customer base will expand Glatfelter’s portfolio to include surgical drapes and gowns, wound care, critical cleaning materials, face masks, facial wipes and cosmetic masks, to provide a best-in-class suite of nonwovens technologies, applications and expertise. We look forward to leveraging the combined talents of the Jacob Holm and Glatfelter employees to better serve customers, accelerate the innovation of sustainable engineered materials, and achieve significant value-creation. In addition, we will be well positioned to achieve meaningful economies of scale and synergies in the areas of sourcing, operational excellence, capital deployment, and general and administrative costs,” Dante C. Parrini, chairman and chief executive officer of Glatfelter said in a statement.

Fibre2Fashion News Desk (GK)