Xerium Technologies, Inc. (NYSE: XRM), a leading manufacturer and supplier of machine clothing and roll covers for the paper and packaging industry, has just announced that its Board of Directors has initiated a review of strategic alternatives to maximize shareholder value. Alternatives could include a sale of the Company or of its divisions and selected assets in separate transactions, a strategic merger, a Reverse Morris Trust transaction, or other business combination. The Company has engaged TN Capital Advisors LLC (“True North”) as financial advisor and Latham & Watkins LLP as legal advisor to assist in the process.
James Wilson, Chairman of the Board, said, “Our markets are stable and our execution is strong and getting stronger. With an expected EBITDA to capital expenditure ratio of roughly 7 times, Xerium is on a path to increase shareholder value through debt reduction. However, the Company currently carries expensive debt that could be refinanced on more attractive terms by a buyer, and suffers from poor stock trading liquidity. After careful consideration, the Board has determined that there may be opportunities to accelerate value recognition or unlock additional value through strategic actions, and this is an appropriate time to identify and evaluate options for shareholders.”
Mark Staton, President and Chief Executive Officer, said, “Our people have done a great job of completing this complex asset restructuring. We are now a company with high quality assets in regions around the world poised for growth, with 75% of our product sales in markets for growing grades of paper and packaging.”
There can be no assurance that the Board’s strategic review will result in any transaction, or any assurance as to its outcome or timing.
The Company does not intend to disclose or comment on developments related to its review unless and until the Board has approved a specific transaction or otherwise determined that further disclosure is appropriate.
About Xerium Technologies
Xerium Technologies (NYSE:XRM) is a global leader in the design, engineering, manufacture and installation of machine clothing and roll covers for the world’s leading producers of paper and packaging. For more information about Xerium visit our website at www.xerium.com