Business
Neenah Paper Expands Technical Products With Agreement to Acquire FiberMark's German Operations
Neenah Paper Expands Technical Products With Agreement to Acquire FiberMark's German Operations.
About this update from Northpalm Capital Corp.
[{"type":"text","content":"\n\n\n\n\nALPHARETTA, Ga., Aug. 9 /CNW/ -- (NYSE: NP) -- Neenah\nPaper, Inc. today announced it had signed a definitive agreement to purchase\nFiberMark's German subsidiaries for $218 million. These operations, consisting\nof three manufacturing sites, produce a diverse range of products, including\nauto filter media, tape and abrasive backings, and other specialized printing\nand coating substrates. In 2005, FiberMark Germany's operating income was\napproximately $29 million on net sales of $221 million.\n\"This transaction clearly fits our strategy of transforming into a company\nfocused on premium fine papers and technical products. The acquisition gives\nus scale in technical products, a global footprint and presence more aligned\nwith our customers, and an expanded technological platform that we can\nleverage to deliver higher value products and expand into new markets,\" said\nSean Erwin, Chief Executive Officer and Chairman of the Board. \"FiberMark's\nGerman operations have a long history of success. By joining with Neenah Paper\nthere are clearly opportunities to create value between the two companies and\nto become the global supplier of choice for customers in our markets.\"\nMr. Erwin indicated no significant restructuring or integration charges\nwere anticipated and that the transaction is expected to deliver attractive\nreturns on invested capital for shareholders and be immediately accretive to\nearnings. Financing is expected to be through a combination of available cash,\nincluding $140 million of proceeds from the sale of timberlands received in\nJune, and debt from existing credit facilities or other sources.\nThe company indicated the transaction is expected to close early in the\nfourth quarter and is subject to customary closing conditions, including\ncompetition clearance in certain jurisdictions.\n\nAbout Neenah Paper, Inc.\nNeenah Paper manufactures and distributes a wide range of premium and\nspecialty paper grades, with well-known brands such as CLASSIC(R),\nENVIRONMENT(R), KIMDURA(R) and MUNISING LP(R). The company also produces and\nsells bleached pulp, primarily for use in the manufacture of tissue and\nwriting papers. Neenah Paper is based in Alpharetta, Georgia, and has\nmanufacturing operations in Wisconsin, Michigan and in the Canadian provinces\nof Ontario and Nova Scotia. Additional informatio...