FiberMark Announces Acquisition of Papierfabrik Lahnstein GmbH
BRATTLEBORO, Vt.--(BUSINESS WIRE)--Sept. 15, 1999--FiberMark, Inc. (NYSE:FMK - news) today announced its acquisition of Papierfabrik Lahnstein GmbH, a leading European specialty fiber-based materials manufacturer headquartered near Frankfurt, Germany, with annual revenues of approximately DM68.0 million ($36.0 million). FiberMark assumes ownership effective August 1, 1999.
The acquisition, with a purchase price of DM41.5 million (approximately $22.0 million), was financed with $7.0 million of cash reserves and $15.0 million in German bank debt. The German bank debt amortizes over 6 years and carries a fixed interest rate of 6.5 percent. The acquisition is expected to provide ongoing annual earnings accretion of approximately $.15 per share. Due to the typical seasonal sales slowdown in Europe in the second half of the year, the anticipated effect of the Lahnstein acquisition on FiberMark's 1999 results should be neutral to slightly positive.
''This German acquisition further positions us as a global leader in specialty fiber-based materials, with expanded capabilities in nonwoven and synthetic materials,'' said Alex Kwader, president and chief executive officer. ''It augments our core offerings in selected markets and it will offer immediate earnings accretion as a successful, stand-alone operation. With our existing international sales force, we also expect to broaden the reach of Lahnstein beyond its current European base, and foresee additional cross-selling opportunities in the U.S. and worldwide,'' Kwader said.
Papierfabrik Lahnstein is a wholly owned subsidiary of Sihl AG, headquartered in Zurich, Switzerland. The acquired company, FiberMark's fifth acquisition since 1994, is a leading European manufacturer of high quality specialty papers and nonwoven materials. Key products include coating substrates for wallcoverings, security papers, self-adhesive labels and flooring overlay. Printing substrates are used for graphic arts applications, specialty tags and labels, and disposable medical products and tablecloths.
These products are manufactured in a single production facility located in Lahnstein, Germany northwest of Frankfurt. This facility holds DIN EN ISO 9001 Quality Management System certification, and produces materials from synthetic, wood and specialty fibers, with value-added saturating, coating and converting capabilities. Lahnstein is known for its strong customer-oriented research and development, and its ability to customize materials for different customers and applications.
Papierfabrik Lahnstein will operate as FiberMark Lahnstein, under the leadership of Detlef Stoltefaut, formerly general manager and CEO of Papierfabrik Lahnstein, and his management team. Dr. Walter Haegler, vice president and general manager of FiberMark Gessner GmbH, will assume responsibility for all German operations, including FiberMark Lahnstein.
FiberMark is a leading producer of specialty fiber-based materials meeting industrial and consumer needs worldwide. Products include filter materials for automotive, heavy equipment, vacuum bag and fast food applications; cover and presentation materials for office and school supplies; specialty tape base and labels for medical tapes and jeans labels; and technical specialties including base materials for photographic and graphic arts applications, printed circuit boards and abrasives. The company, headquartered in Brattleboro, Vermont in the U.S., currently has nine facilities throughout the United States and Europe. Sales revenue for 1998 was $307 million.
This press release contains forward-looking statements. Actual results may differ depending on the economy and other factors discussed in the company's Form 10K filed with the SEC March 31, 1999.
Web address: fibermark.com
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Contact:
FiberMark, Inc.
Janice C. Warren, 802/257-5981
info@fibermark.com |
