YOUNGSVILLE - Andritz's proposed acquisition of Xerium Technologies has been approved by the latter's shareholders.
Andritz agreed a deal in June to acquire the North Carolina-based firm for a US$13.50 per share, all-cash transaction.
Approximately 81.9% of the total issued and outstanding shares of Xerium common stock voted to approve the merger, exceeding the required vote of a majority of the issued and outstanding shares.
Announcing the decision, Mark Staton, Xerium’s Chief Executive Officer said: "Today’s favorable vote clearly supports our view that Andritz’s proposal to acquire Xerium is the best outcome for all of our stockholders. We are also excited for our employee and customer stakeholders who we expect to benefit from the combined enterprise.”
Xerium supplies machine clothing, consisting of engineered fabrics, felts, belts, roll covers and associated rolls and other technologies, to the paper and nonwovens industries, as well as to the building industry and other speciality markets.
In June 2017, for example, the company reported the sale of its 1,000th Huycon process belt for high speed spunmelt/meltblown production lines which is manufactured in Austria.
With 28 manufacturing facilities in 13 countries around the world, Xerium has approximately 2,950 employees and its 2017 sales were $481 million, of which $288 million was purely machine clothing.
With clearance also received from Austria and Germany, Xerium expects the transaction to close during the fourth quarter of 2018, subject to the remaining regulatory approvals and other customary closing conditions.
The Andritz Group, headquartered in Graz, Austria, had sales of just under €5.9 billion and has four divisions – Hydro, Pulp and Paper, Metals and Separation.
Andritz Nonwoven is part of the Pulp and Paper division which had sales of over €2 billion in 2017.