Glatfelter announced today (1 Oct 2014) that it has completed the previously announced acquisition of Spezialpapierfabrik Oberschmitten GmbH (SPO) from FINSPO Beteiligungs-GmbH for €8.5 million (approximately U.S.$11 million).

SPO's plant is located near Frankfurt, Germany. Its primary electrical products and applications include highly technical papers for a wide range of capacitors used in consumer and industrial products; insulation papers for cables and transformers; and materials for industrial power inverters, electromagnetic current filters and electric rail traction. SPO also produces glassine products, which are used in cosmetics packaging, food packaging, and pharmaceutical dosage bags.

The acquisition of SPO broadens Glatfelter's existing product lines for the electrical market. This acquisition also complements Glatfelter's previously announced partnership with Dreamweaver International to develop and manufacture lithium-ion battery separators, which utilize Glatfelter's capabilities and expertise in making advanced fiber-based engineered materials. SPO will operate as part of Glatfelter's Composite Fibers business unit.

"We are excited by the completion of this acquisition and look forward to delivering to SPO's customers on our commitment to superior product quality and customer service," said Dante C. Parrini, Chairman and Chief Executive Officer. "I believe this acquisition will further our Composite Fibers business unit's strategy of capitalizing on the fast-growing electrical market by expanding our electrical papers product platform. I am also pleased to welcome SPO's 193 employees to our organization."

Glatfelter financed the acquisition through a combination of cash on hand and borrowings under its existing revolving credit agreement. The addition of SPO is expected to be $0.03 to $0.05 accretive to earnings per share in 2015 excluding one-time acquisition and integration costs. The Company expects to incur approximately $2 million to $3 million of one-time acquisition and integration costs.