Glatfelter Corporation signed a definitive agreement to acquire Georgia-Pacific Mt. Holly LLC from Georgia-Pacific LLC for approximately $180 million.
January 05, 2021
Share
Glatfelter Corporation (NYSE:GLT) signed a definitive agreement to acquire Georgia-Pacific Mt. Holly LLC from Georgia-Pacific LLC for approximately $180 million on January 5, 2021. The purchase price is subject to customary adjustments at closing for cash, working capital and indebtedness of Georgia-Pacific Mt. Holly LLC. Either party may terminate the agreement in the event the acquisition has not closed by the date that is nine months following the date of the agreement, which date will automatically be extended to twelve months if HSR Approval has not been obtained and the other closing conditions are satisfied or are capable of being satisfied. Glatfelter Corporation will be obligated to pay Georgia-Pacific LLC a termination fee of $9 million in certain circumstances. As of January 6, 2021, Glatfelter plans to finance the acquisition through a combination of cash on hand and borrowing under its existing revolving credit facility. Georgia-Pacific Mt. Holly LLC generates annual net sales and adjusted EBITDA of approximately $100 million and $20 million, respectively. Current employees of Georgia-Pacific Mt. Holly LLC, totaling approximately 150 people, will become employees of Glatfelter at the time the deal closes. Post-closing, Georgia-Pacific Mt. Holly will be operated as part of Airlaid Materials reporting segment of Glatfelter Corporation.
The transaction is subject to customary closing conditions, approvals from Governmental Body of competent jurisdiction, regulatory clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976. On March 26, 2021 Glatfelter Corporation received the antitrust regulatory approval to acquire Georgia-Pacific Mt. Holly LLC from Georgia-Pacific LLC. The transaction is expected to close by May 31, 2021. Credit Suisse Securities (USA) LLC acted as financial advisor and Clare O’Brien and Daniel Litowitz of Shearman & Sterling LLP acted as legal advisor for Glatfelter Corporation. Janine Brown and Aaron R. Dixon of Alston & Bird LLP acted as the legal advisor for Georgia-Pacific LLC.
Glatfelter Corporation is a global supplier of engineered materials. The Company offers solutions across tea and single-serve coffee filtration, personal hygiene, as well as in many diverse packaging, home improvement and industrial applications. The Company operates through three segments: Airlaid Materials, Composite Fibers and Spunlace. Its Airlaid Materials segment is engaged in the sales of airlaid nonwoven fabric-like materials used in feminine hygiene products, adult incontinence products, tabletop, specialty wipes, and other airlaid applications. Its Composite Fibers segment is engaged in the sales of single-serve tea and coffee filtration papers, wallcovering base materials, composite laminate papers, technical specialties including substrates for electrical applications, and metallized products. Its Spunlace segment is engaged in the sales of quality spunlace nonwovens for critical cleaning, high-performance materials, personal care, hygiene, and medical applications.
GLATFELTER CORPORATION 
