Xerium Technologies announced the acquisition of a privately held roll covers business in China.
Xerium acquired from IB Investments Limited all of the equity of a Mauritius holding company that owns 90% of a joint venture roll covering operation located in Xian that operates under the Xibe brand name and a wholly owned foreign-funded enterprise with a roll covers facility in Changzhou, China. The total consideration for the acquisition was approximately US$12 million and is subject to certain adjustments. The acquired companies had aggregate net sales for the first nine months of 2007 of approximately US$3.6 million.
Thomas Gutierrez, Xerium's President and Chief Executive Officer, said, "China is one of the fastest growing paper and board manufacturing markets in the world. We expect the Chinese paper industry to continue to invest in some of the most technically-advanced paper making equipment in the world and thus, increase demand for our advanced roll covers technology and value-added services. With this transaction, we are able to accelerate our entry into this growing market. We believe that Xerium can leverage its market leadership under the Stowe Woodward brand name, taking full advantage of the recently-built Changzhou facility and Xibe's reputation for providing the local Chinese market with quality services and roll products, to significantly build market share in the Chinese paper and board market."
Xerium Technologies is a leading global manufacturer and supplier of two types of consumable products used primarily in the production of paper: clothing and roll covers. The company, which operates around the world under a variety of brand names, utilizes a broad portfolio of patented and proprietary technologies to provide customers with tailored solutions and products integral to production, all designed to optimize performance and reduce operational costs. With 35 manufacturing facilities in 15 countries around the world, Xerium has approximately 3,800 employees.