CHARLOTTE – Glatfelter Corporation has completed its acquisition of Jacob Holm, the leading manufacturer of spunlace nonwoven fabrics, for approximately US$302 million.
The acquisition will increase Glatfelter’s diversification into a range of complementary segments serving the growing sustainable wipes, healthcare and hygiene categories.
As part of the deal, 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.
“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 fibers products," said Dante C. Parrini, chairman and chief executive officer of Glatfelter, adding that 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.
"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.”
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.
