Glatfelter completes sale of Specialty Papers Unit
November 1, 2018
YORK, Pennsylvania (News release) - Glatfelter announced the closing of the previously announced sale of its Specialty Papers Business Unit to Pixelle Specialty Solutions LLC, an affiliate of Lindsay Goldberg (the "Purchaser") for $360 million. This divestiture is a significant milestone in the Company's strategic transformation to become a leading global engineered materials company.
Cash proceeds from the sale were approximately $323 million reflecting estimated purchase price adjustments as of the closing date and the assumption by the Purchaser of approximately $38 million of retiree healthcare liabilities. The purchase price is subject to a customary post-closing working capital adjustment as well as an adjustment for the final measurement of retiree healthcare liabilities. In addition, the Purchaser assumed approximately $220 million of pension liabilities relating to Specialty Papers' employees and will receive approximately $270 million of related assets from the Company's existing pension plan.
The cash proceeds from the transaction will be used to pay down debt and for general corporate purposes.