Glatfelter has announced that it has signed a definitive agreement to purchase Concert Industries Corp. (Concert) from Brookfield Special Situations Management Limited, an affiliate of Brookfield Asset Management Inc. for Canadian $246.5 million (U.S.$235 million).
Concert is a supplier of highly absorbent cellulose-based airlaid non-woven materials, used to manufacture a diverse range of consumer and industrial products for growing global end-use markets, including feminine hygiene and adult incontinence products, specialty wipes and food pads.
In 2009, Concert’s revenues are estimated at approximately C$233 million (U.S.$203 million) and Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) is estimated to be approximately C$29 million (U.S.$25 million). Glatfelter expects the acquisition to be modestly accretive in 2010 and to be $0.20 to $0.25 per share accretive in 2011.
"We view Concert as a natural fit for our business and right in line with our growth strategy," said George H. Glatfelter II, Chairman and Chief Executive Officer of Glatfelter.
Glatfelter plans to finance the acquisition through a combination of cash on hand and debt. As of November 30, 2009, Glatfelter had a cash balance of $136 million and $194 million available under its revolving credit facility.
