Glatfelter To Buy Georgia-Pacific's U.S. Nonwovens Business For $175 Mln

(RTTNews) - Glatfelter Corp. (GLT) agreed to buy Georgia-Pacific's U.S. nonwovens business for $175 million.

Glatfelter said it will acquire Georgia-Pacific's Mount Holly, North Carolina, airlaid manufacturing business and an R&D pilot line for nonwovens product development in Memphis, Tennessee, which collectively employ about 150 people.

The Mount Holly facility has a capacity of 37,000 metric tons and produces high-quality airlaid products focused on wipes and tabletop materials. The R&D pilot line and additional technical resources will enhance ongoing innovation efforts.

Glatfelter expects to realize annual cost synergies of about $4 million to $6 million within three years and incur one-time costs of about $10 million for transaction fees and integration.

Glatfelter said it plans to finance the acquisition through a combination of cash on hand and borrowing under its existing revolving credit facility.