York, Pa.-based Glatfelter, a producer of engineered products and specialty papers, has announced
its intent to purchase Canada-based airlaid nonwovens manufacturer Concert Industries Corp. from
Brookfield Special Situations Mangement Ltd. for CAN$246.5 million (approximately US$235 million).
Glatfelter will manage Concert as a third business unit joining its existing Specialty Papers and
Composite Fibers units. Pending all regulatory approvals, Glatfelter expects the acquisition to be
complete by the end of the first quarter of 2010.
“We view concert as a natural fit for our business and right in line with our growth
strategy,” said George H. Glatfelter II, chairman and CEO, Glatfelter. “This acquisition will
combine the strengths of two highly-regarded specialty producers and provide us with another
industry-leading global business that sells highly specialized, engineered, fiber-based products to
niche markets with substantial barriers to entry. Concert participates in markets that are adjacent
to markets we currently serve. It utilizes technologies that are familiar to us and broadens our
relationship with premier global consumer products companies. In addition, Concert will create
additional growth opportunities globally for Glatfelter, particularly in developing markets such as
Asia, Central and Eastern Europe and South America.”
Concert operates two state-of-the-art plants – one in Canada, and one in Germany – and
employs approximately 600 people. The company recently completed the installation of a new
production line in Germany. The $70 million investment increased capacity by 18,000 metric tons to
84,000 metric tons per year. The company is primarily focused on products for the feminine hygiene
market, which comprise roughly 80 percent of its sales. Other products are used in wipes, adult
incontinence products and food pads. Customers include Procter & Gamble, Johnson & Johnson
and Kimberly-Clark.
January 12, 2010
