CHARLOTTE, N.C. (News release) -- Glatfelter Corporation announced that it plans to acquire Jacob Holm, the leading manufacturer of spunlace nonwoven fabrics, for approximately $308 million.

The acquisition will increase Glatfelter's diversification into attractive and complementary segments serving the growing wipes, healthcare and hygiene categories.

Jacob Holm has four manufacturing facilities and six sales offices located in the Americas, Europe, and Asia, and approximately 800 employees world-wide. Its broad product offerings and blue-chip customer base will expand Glatfelter's portfolio to include surgical drapes and gowns, wound care, face masks, facial wipes and cosmetic masks.

The acquisition of Jacob Holm's Sontara business - a leading brand of finished products for critical cleaning wipes and medical apparel - will also enhance Glatfelter's technological capabilities.

Jacob Holm generated approximately $400 million in revenue and about $45 million in earnings in the year to June 30, 2021, supported by strong pandemic tailwinds.

Glatfelter believes Jacob Holm's performance includes a benefit from Covid-related demand estimated to be between $10 million and $15 million of earnings. It expects to realise annual cost synergies of approximately $20 million within 24 months of closing and is committed to deleveraging its balance sheet following the completion of this transaction.

"This represents another significant step forward in Glatfelter's transformation," said Dante C. Parrini, chairman and CEO of Glatfelter. "The combination of Jacob Holm's quality spunlace and advanced fibre products along with Glatfelter's industry-leading airlaid and composite fibere products will provide a best-in-class suite of nonwovens technologies, applications, and expertise to serve customers' growing global demand. By acquiring Jacob Holm, we will further diversify our nonwovens and substrate offerings and enhance our overall innovation capabilities."

The transaction is subject to the satisfaction of customary closing conditions.