Glatfelter Sold to Lindsey Goldberg

Glatfelter Paper has agreed to sell its Specialty Papers Business Unit on a cash free and debt free basis to Lindsay Goldberg for a total sale price of $360 million. That would include the Chillicothe paper mill. 

The sale price includes about $320 million of cash proceeds and the assumption by the Purchaser of about $40 million of retiree healthcare liabilities.

The purchase price is subject to a customary working capital adjustment mechanism, as well as an adjustment for the retiree healthcare liabilities that the Purchaser will assume.

Lindsay Goldberg will assume about $250 million of pension liabilities relating to the Specialty Papers Business employees and receive 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 Specialty Papers Business Unit for the 12 months ended June 30, 2018, were approximately $783 million.

The transaction is expected to close during the fourth quarter of 2018, subject to satisfaction of customary closing conditions.

For more details, go the RTT News link. CLICK HERE....

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