Glatfelter To Buy Spezialpapierfabrik Oberschmitten For €8.5 Mln

(RTTNews) - PH Glatfelter Co. (GLT) said Friday that it has agreed to buy all of the outstanding equity of Spezialpapierfabrik Oberschmitten GmbH from FINSPO Beteiligungs-GmbH for €8.5 million, or about U.S.$11 million.

Spezialpapierfabrik Oberschmitten has annual sales of about €25 million, or U.S.$33 million. Its plant is located near Frankfurt, Germany. Its primary electrical products and applications include highly technical papers for a wide range of capacitors used in consumer and industrial products; insulation papers for cables and transformers; and materials for industrial power inverters, electromagnetic current filters and electric rail traction. SPO also produces glassine products, which are used in cosmetics packaging, food packaging, and pharmaceutical dosage bags.

The proposed transaction is expected to close by early October.

Glatfelter expects to incur about $2 million to $3 million of one-time acquisition and integration costs. Excluding one-time costs, the addition of Spezialpapierfabrik Oberschmitten is expected to be $0.03 to $0.05 accretive to earnings per share in 2015. Upon closing, the acquired business will become part of Glatfelter's Composite Fibers business unit, which manufactures fiber-based engineered materials for growing global niche markets, including filtration papers for tea and single serve coffee applications, nonwoven materials for the production of wall cover products, metallized papers, composite laminates, and technical specialties.