Xerium Technologies, Inc. (NYSE: XRM), a leading global
manufacturer of clothing and roll covers used primarily in the paper
production process, today announced the acquisition of privately-held
Coldwater Covers, Inc. from The Coldwater Group, Inc. of Atlanta,
Georgia. Under the terms of the transaction, Xerium's subsidiary,
Stowe Woodward LLC, acquired all of the equity of Coldwater Covers,
Inc., together with the company's manufacturing facility located in
Oxford, Alabama, for a total purchase price of approximately $6.8
million, subject to certain adjustments.
Coldwater Covers manufactures polyurethane and composite roll covers and bowed rolls, primarily for the paper industry. In addition, Coldwater Covers provides a broad array of mechanical services for rolls used in paper making and a variety of other industrial applications. The Coldwater Group, Inc. retained Coldwater Seals, Inc., a manufacturer of suction roll sealing strips and paper machine drainage elements.
Tom Gutierrez, Xerium's President and Chief Executive Officer, said, "The Coldwater Covers business is an ideal extension to the line of roll covers and mechanical services that we provide through the global operations of our Stowe Woodward division. Coldwater Covers has brought to market several new and innovative roll cover technologies and, like Stowe Woodward, has established a strong reputation for quality and customer service."
David Withers, Chief Executive Officer of The Coldwater Group, Inc., commented, "This transaction represents a significant opportunity for the Coldwater Covers business to benefit from an organization with the size and global footprint of Xerium. We feel that this combination provides Coldwater Covers and Xerium with enhanced opportunities to capitalize on the complementary nature of their product offerings and deliver greater value to the market."
ABOUT XERIUM TECHNOLOGIES
Xerium Technologies, Inc. (NYSE: XRM) is a leading global manufacturer and supplier of two types of 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, owns 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 36 manufacturing facilities in 15 countries around the world, Xerium Technologies has approximately 3,900 employees.
ABOUT STOWE WOODWARD
Stowe Woodward, a unit of Xerium Technologies, Inc., is a leading supplier of roll covers, bowed rolls and manufacturing services for the pulp and paper industry. Stowe Woodward has established a record for success through a combination of technological innovation and attentive customer service. A global technology leader in roll covers since it was founded in 1886, Stowe Woodward has manufacturing operations around the world and is headquartered in Westborough, Massachusetts.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements that are not based on historical fact, including without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "indicates," "suggests" and similar expressions. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include, but are not limited to: (i) adverse changes in general economic or market conditions, including without limitation those affecting the paper industry; (ii) labor unrest; (iii) currency fluctuations; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) the relative and varying rates of product price and component cost changes and the volume and mixture of product and services revenues; (vi) transitions to new products, the uncertainty of customer acceptance of new product offerings and technological and market change; (vii) the lack of any requirement to make dividend payments on our common stock at any particular level or at all; (viii) limitations imposed by our credit facility on the amount of dividends we are permitted to pay; (ix) our high degree of leverage and significant debt service obligations, together with our dividend policy, may cause us to have insufficient cash to fund growth and unexpected cash needs; (x) war or acts of terrorism in any country in which we conduct business; (xi) changes in U.S. or foreign government policies, laws, regulations and practices, including without limitation those regarding the repatriation of funds and taxes; and (xii) those other risks described under the heading "Risk Factors" in the prospectus dated May 16, 2005 related to the Company's initial public offering of common stock and filed with the Securities and Exchange Commission. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such forward-looking statements after the date of this release.
Coldwater Covers manufactures polyurethane and composite roll covers and bowed rolls, primarily for the paper industry. In addition, Coldwater Covers provides a broad array of mechanical services for rolls used in paper making and a variety of other industrial applications. The Coldwater Group, Inc. retained Coldwater Seals, Inc., a manufacturer of suction roll sealing strips and paper machine drainage elements.
Tom Gutierrez, Xerium's President and Chief Executive Officer, said, "The Coldwater Covers business is an ideal extension to the line of roll covers and mechanical services that we provide through the global operations of our Stowe Woodward division. Coldwater Covers has brought to market several new and innovative roll cover technologies and, like Stowe Woodward, has established a strong reputation for quality and customer service."
David Withers, Chief Executive Officer of The Coldwater Group, Inc., commented, "This transaction represents a significant opportunity for the Coldwater Covers business to benefit from an organization with the size and global footprint of Xerium. We feel that this combination provides Coldwater Covers and Xerium with enhanced opportunities to capitalize on the complementary nature of their product offerings and deliver greater value to the market."
ABOUT XERIUM TECHNOLOGIES
Xerium Technologies, Inc. (NYSE: XRM) is a leading global manufacturer and supplier of two types of 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, owns 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 36 manufacturing facilities in 15 countries around the world, Xerium Technologies has approximately 3,900 employees.
ABOUT STOWE WOODWARD
Stowe Woodward, a unit of Xerium Technologies, Inc., is a leading supplier of roll covers, bowed rolls and manufacturing services for the pulp and paper industry. Stowe Woodward has established a record for success through a combination of technological innovation and attentive customer service. A global technology leader in roll covers since it was founded in 1886, Stowe Woodward has manufacturing operations around the world and is headquartered in Westborough, Massachusetts.
FORWARD LOOKING STATEMENTS
This press release may contain forward-looking statements that are not based on historical fact, including without limitation, statements containing the words "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," "indicates," "suggests" and similar expressions. Because these forward-looking statements involve known and unknown risks and uncertainties, there are important factors that could cause actual results, events or developments to differ materially from those expressed or implied by these forward-looking statements. Such factors include, but are not limited to: (i) adverse changes in general economic or market conditions, including without limitation those affecting the paper industry; (ii) labor unrest; (iii) currency fluctuations; (iv) competitive factors, including but not limited to pricing pressures and new product introductions; (v) the relative and varying rates of product price and component cost changes and the volume and mixture of product and services revenues; (vi) transitions to new products, the uncertainty of customer acceptance of new product offerings and technological and market change; (vii) the lack of any requirement to make dividend payments on our common stock at any particular level or at all; (viii) limitations imposed by our credit facility on the amount of dividends we are permitted to pay; (ix) our high degree of leverage and significant debt service obligations, together with our dividend policy, may cause us to have insufficient cash to fund growth and unexpected cash needs; (x) war or acts of terrorism in any country in which we conduct business; (xi) changes in U.S. or foreign government policies, laws, regulations and practices, including without limitation those regarding the repatriation of funds and taxes; and (xii) those other risks described under the heading "Risk Factors" in the prospectus dated May 16, 2005 related to the Company's initial public offering of common stock and filed with the Securities and Exchange Commission. These factors should be considered carefully and readers are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any such forward-looking statements after the date of this release.