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York-based Glatfelter announces $360M sale of specialty papers division
York-based Glatfelter announced Wednesday, Aug. 22, that its specialty papers business unit, which includes a Spring Grove location, will be sold to a private investment firm.
The investment firm Lindsay Goldberg will be purchasing facilities in Pennsylvania and Ohio and woodyard operations in Maryland, Ohio and West Virginia, Glatfelter said in a news release.
Lindsay Goldberg will be making the purchase for $360 million, according to the release.
Additionally, Lindsay Goldberg will assume $250 million in pension liabilities related to the employees and receive about $300 million in related assets from Glatfelter's existing pension plan, the release states.
Lindsay Goldberg, according to the release, is a firm that focuses on partnering with families, founders and management teams seeking to build their business. More information on the firm can be found on its website, www.lindsaygoldbergllc.com/.
Net cash proceeds from the sale will be used to pay down debt, to fund the acquisition of Georgia-Pacific's European nonwovens business and for other general corporate purposes, the release states. According to Glatfelter, the transaction is expected to close during the fourth quarter of 2018.
"Specialty Papers employees have built a 154-year legacy of high-quality products and outstanding customer service through hard work and dedication. The decision by Glatfelter’s Board of Directors to sell the Specialty Papers Business Unit provides the opportunity for Lindsay Goldberg to continue these strong traditions by dedicating the resources and focus necessary to further shape the business in the years ahead," Eileen L. Beck, vice president of human resource for Glatfelter, said in the release.
Additional information may be found on Glatfelter's website.
Glatfelter: The company has more than 750 employees at its Spring Grove facility, according to Beck.
It also has 120 employees at its headquarters in York City.
Glatfelter also has specialty paper divisions in Chillicothe, Ohio — with more than 1,000 employees — and Fremont, Ohio — with about 45 employees.