ACCO Brands pays $62 million debt, borrows $38 million more in 2018

By Devika Patel

Knoxville, Tenn., Feb. 13 – ACCO Brands Corp. generated $160.9 million of free cash flow and used some of it to repay $62.2 million of debt.

In addition, the company borrowed $38 million for the acquisition of GOBA Internacional, SA de CV.

“We were able to grow our free cash flow from $146 million in 2014 to $161 million in 2018,” chairman, president and chief executive officer Boris Y. Elisman said on the company’s fourth quarter and year ended Dec. 31, 2018 earnings conference call on Wednesday.

“For the full year, we repaid $62 million in debt,” executive vice president and chief financial officer Neal V. Fenwick

“We paid $38 million for the GOBA acquisition from increased debt,” Fenwick said.

On June 14, 2018, ACCO said it had agreed to acquire GOBA, a producer of branded academic, consumer and business products, for approximately $31 million. The acquisition was settled by July 3, 2018.

As of Dec. 31, 2018, the company’s net leverage ratio was 2.8x. The company continues to target a long-term net leverage ratio in the range of 2x to 2.5x, according to the earnings release.

The company continues to generate strong annual cash flow and its capital allocation priorities remain funding strategic acquisitions, debt reduction, dividends and share repurchases, according to the release.

Cash and cash equivalents were $67 million as of Dec. 31, 2018, compared to $76.9 million as of Dec. 31, 2017, the release stated.

ACCO Brands is a Lake Zurich, Ill.-based office supply manufacturer.

© 2015 Prospect News.
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