Albany International Sells Filtration Business

Albany International Corp., an Albany, N.Y.-based advanced textiles and materials processing company, has agreed to sell its Albany Filtration Technologies (AFT) business to All Filtration Technologies Australia Pty Ltd. for $45 million. The transaction, expected to close late this month or early next month, includes Albany’s equity interest in Albany International Applied Technology (Suzhou) Co. Ltd., China, and all other AFT business assets, located primarily in Australia but also including assets in Brazil, Mexico and the United States. Affected employees will be offered positions with All Filtration Technologies.

AFT manufactures filtration products for such industrial applications as power generation, among other processes. The business generated net sales of $10.5 million in the first quarter (Q1) of this year, a 47-percent increase over Q1 2007. According to Albany International President and CEO Joe Morone, AFT, while profitable, is not as closely aligned with its core competencies as other emerging businesses. He said sale proceeds will be used to fund capital expenditures planned abroad and for provide general working capital.

Albany also announced it would consolidate its Gosford, Australia, press and fiber cement operations, retaining the location as a center of technical excellence in needled felts for applications including papermaking and fiber cement, among other applications. The company also will close its West Gosford-based manufacturing operation for high-performance doors but will continue its sales and service operations in Australia.

May 6, 2008