Ahlstrom's acquisition of Orlandi's spunlace nonwovens business
Ahlstrom Corporation STOCK EXCHANGE RELEASE 30.4.2007
Ahlstrom, a global leader in high performance fiber-based materials, today announced the completion of the acquisition of Orlandi's spunlace nonwovens business in Italy. The acquisition, initially announced in February 2007, will further strengthen Ahlstrom's position one as of the leading producers of nonwoven roll goods for wipes globally. The acquisition price is approximately EUR 60 million and the transaction is expected to be EPS enhancing from 2007.
The acquired business includes two plants with four production lines in Cressa and Gallarate in Northern Italy, close to Milan. The plants employ approximately 120 people.
Orlandi's business expands Ahlstrom's technology portfolio with airlace technology which is used to manufacture pulp-containing wiping fabrics. The acquired business will generate annualized net sales of approximately EUR 65 million in 2007.
Orlandi is currently one of the leading wiping fabrics producers in Europe, serving the personal, household and industrial wipes markets. In addition, the acquired business manufactures medical and industrial spunlace fabrics.
"The deal is in line with our strategy to serve our customers globally. Currently, Ahlstrom has a strong presence in the wipes markets in the USA. This acquisition both expands our product offering of pulp-containing wiping fabrics and allows us to enter the growing European wipes markets", says Jukka Moisio, President and CEO of Ahlstrom.
On March 30, 2007 Ahlstrom announced the acquisition of the consumer wipes business of Fiberweb plc with three plants in Europe and one in the USA. Following the deal, Ahlstrom will be the leading wiping fabrics producer in the world. The company anticipates to close the acquisition of Fiberweb's consumer wipes business during the second quarter of 2007.
Ahlstrom is also expanding its wiping fabrics production to South America by investing in a new production line in Brazil. The new line is expected to be operational in early 2008.
For further information, please contact: Jukka Moisio, President and CEO, Ahlstrom Corporation, tel. +358 10 888 4700 Claudio Ermondi, Senior Vice President, Nonwovens, tel. +39 348 8600 9883
Distribution: Helsinki Stock Exchange Main media www.ahlstrom.com
Ahlstrom in brief Ahlstrom is a global leader in the development, manufacture and marketing of high performance fiber-based materials. Nonwovens and specialty papers, made by Ahlstrom, are used in a large variety of everyday products, e.g. in filters, wipes, flooring, labels, and tapes. The company has a strong market position in several business areas in which it operates, built upon the company's unique fiber expertise and innovative approach. Ahlstrom's 5,700 employees serve customers via sales offices and production facilities in more than 20 countries on six continents. In 2006, Ahlstrom's net sales amounted to EUR 1.6 billion. Ahlstrom's share is listed on the Helsinki Stock change. The company website is www.ahlstrom.com.