The transaction is expected to close within the 2Q 2013, but no later than June 30, 2013, and is subject to certain customary conditions, including governmental anti-trust approvals in Germany and the Ukraine.
Pursuant to the terms of the Share Purchase Agreement, the Company has agreed to guarantee the obligations of FSP and Glatfelter has agreed to guarantee the obligations of Glatfelter Gernsbach thereunder.
Dresden owns and operates the Company's Dresden Mill, a producer of non-woven wallpaper base paper operating in Germany.
Chadwick Wasilenkoff, President and CEO of Fortress Paper, commented: "The sale of the Dresden Mill is an important step in Fortress Paper becoming a more focused global leader in the dissolving pulp industry. The transaction was part of our strategic plan to achieve significant liquidity to enhance future growth opportunities. We are very pleased to have been able to reach an agreement with P.H. Glatfelter and look forward to the finalization of the sale. We would also like to acknowledge the contributions of the Dresden management team over the years and wish them every success in the future."
Fortress Paper operates internationally in three distinct business segments: dissolving pulp, specialty papers and security paper products.
