Austria’s Andritz AG has signed a merger agreement to acquire Xerium Technologies Inc, a global manufacturer and supplier of machine clothing and roll covers for paper, tissue and board machines.

Andritz will acquire New York Stock Exchange-listed Xerium for US$13.50 per share in cash, in a transaction valued at approximately US$833 million, including net financial liabilities of approximately US$590 million.

Headquartered in Youngsville, North Carolina, USA, Xerium operates more than 28 production facilities worldwide. In 2017, the company had sales of US$481 million and an EBITDA of US$85 million.

Wolfgang Leitner, president & CEO of Andritz, said: “With Xerium, we will be acquiring a high-tech global supplier providing essential services and wear parts to the paper industry. The acquisition fits squarely with our long-term strategy to execute complementary acquisitions and to grow our aftermarket business with its stable source of revenue and earnings.”

The deal is expected to close in the second half of 2018.