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J.J. Plank Corporation Strengthened by Xerium Acquisition, Advances Strategy In High-Growth Market Segments

Posted on May 13th, 2016

J.J. Plank Corporation Strengthened by Xerium Acquisition, Advances Strategy In High-Growth Market Segments

NEENAH, WI – J.J. Plank Corporation, its Spencer Johnston brand spreader roll line, and related family of product lines has been acquired by Xerium Technologies, Inc. (NYSE:XRM), a leading global provider of industrial consumable products and services, for $18 million, comprised of $16.25 million in cash at closing, and the rest in future obligations. Xerium proudly serves a multitude of diverse industries including fiber and stock processing, nonwoven fabrics, and building products, as well as pulp, paper, paperboard, and tissue. The addition of J.J. Plank’s product lines will add strength and diversity to Xerium’s products, customers, and markets served. The combined company now has the broadest set of capabilities in the world with respect to spreader rolls, dandy rolls, and tissue embossing rolls.

The transaction furthers strategic plans to expand into product categories with the strongest growth opportunities. Through the acquisition, Xerium and J.J. Plank are expanding current product offerings and service capabilities and markets served, while strengthening financial profiles and growing their customer base.   

Harold Bevis, President and CEO of Xerium Technologies, Inc., said, “Incorporating Spencer Johnston’s and the other divisions' strengths in spreader rolls, dandy rolls, and tissue embossing rolls with our existing portfolio of products is a strategically and financially compelling advancement opportunity. J.J. Plank product lines will strengthen our product and service offerings, add new customers to our roster, and accelerate revenue diversification. Importantly, this acquisition furthers the company’s strategy of realigning our market presence and future sales opportunities by onboarding existing customer references and special-purpose manufacturing assets.”


Bevis continued, “The acquisition is expected to produce post-synergy Adjusted EBITDA of $6 million, which will bolster the company’s de-leveraging efforts and immediately improve Xerium’s leverage ratios on a pro-forma basis.”


Spencer Johnston and the other J.J. Plank divisions generated 2015 revenue of $18.5 million, and are expected to be immediately accretive. Including integration and synergies, Xerium expects the acquisition to provide an Adjusted EBITDA contribution in 2016 of $2 to $3 million, excluding transaction-related costs. When fully integrated, EBITDA contribution is expected to be $6 million annually, assuming no unexpected changes to market conditions.

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