Fortress Security Papers will sell all of the shares in Dresden Papier to Glatfelter Gernsbach and its parent company P.H. Glatfelter. Dresden Papier to become part of Glatfelter's composite Fibers business unit.
Glatfelter has signed a definitive agreement to purchase German specialty nonwovens manufacturer Dresden Papier from Fortress Paper for €160m (CAD216m). Dresden Papier has an installed capacity of 60,000 tpy of nonwoven wallpaper base and employs 146 people at the paper mill in Heidenau near Dresden. The transaction is expected to close in the second quarter of 2013, but is still subject to antitrust approvals in Germany and Ukraine.
According to Glatfelter, Dresden Papier is a leading nonwoven wallpaper base manufacturer, supplying the world largest wallpaper manufacturers. The company believes that the global nonwoven wallpaper business will continue to grow at a compound annual growth rate of 10% and that the acquisition of Dresden Papier will provide growth opportunities for Glatfelter, particularly in large markets such as Russia and China.
"The sale of the Dresden mill is an important step in Fortress Paper becoming a more focused global leader in the dissolving pulp industry," said Chadwick Wasilnekoff, President and CEO of Fortress Paper. The sale of Dresden Papier is said to provide additional liquidity to enhance future growth opportunities.