Glatfelter to sell specialty papers unit to Lindsay Goldberg

York, PA-based Glatfelter (NYSE: GLT) will sell its Specialty Papers Business Unit (SPBU) on a cash- and debtfree basis to Lindsay Goldberg of New York, NY, for $US360 million. The price includes about $320 million cash and the purchaser’s assumption of about $40 million in retiree healthcare liabilities. The purchaser also assumes about $250 million of SPBU pension liabilities and receives about $300 million of related assets from Glatfelter’s existing pension plan. The pension liability remaining with Glatfelter will continue to be significantly overfunded and no cash contributions are expected for the foreseeable future. Net sales for SPBU for the 12 months ended June 30, 2018, were about $783 million.

Glatfelter is focusing on being a global engineered materials company and accelerating the growth potential of its composite fibers and advanced airlaid materials business units.

Net cash proceeds will be used to pay down debt, to fund the previously announced acquisition of Georgia-Pacific’s European nonwovens business and for general corporate purposes. The transaction is expected to close in 4Q18.

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