Xerium technologies looks at strategic alternatives

Youngsville, NC-based Xerium Technologies, Inc. (NYSE: XRM), a manufacturer and supplier of machine clothing and roll covers for the paper and packaging industry, announced in March that its board of directors is reviewing strategic alternatives to maximize shareholder value.

Alternatives could include a sale of the company or of its divisions and selected assets in separate transactions, a strategic merger, a Reverse Morris Trust transaction or other business combination.

James Wilson, chairman of the board, said, “Our markets are stable and our execution is strong and getting stronger. With an expected EBITDA to capital expenditure ratio of roughly seven times, Xerium is on a path to increase shareholder value through debt reduction. However, the company currently carries expensive debt that could be refinanced on more attractive terms by a buyer, and suffers from poor stock trading liquidity.”

Xerium said there can be no assurance that the board’s strategic review will result in any transaction, or any assurance as to its outcome or timing.


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