ALPHARETTA, Ga., March 3, 2020 /PRNewswire/ -- Neenah, Inc.
(NYSE: NP) today announced the signing of a definitive agreement to
acquire Vectorply Corporation ("Vectorply"), a portfolio company of
MSouth Equity Partners, for $155
million in cash. Closing is expected to occur on
April 1, and is subject to customary
conditions.
With annual sales of over $70
million, Vectorply is a leader in the manufacture of
high-performance composite materials used in a variety of growing
end markets. Vectorply has grown its top line at a high single
digit rate over the past five years, with EBITDA margins in the
mid-20's. The company is focused in North
America, with its customers and supply chain predominantly
in the United States, and operates
out of one manufacturing facility in the Southeast.
"Vectorply is well-known for its product capabilities, utilizing
product-enhancing fibers such as carbon, glass and aramid to
produce purpose-built, non-woven reinforcement fabrics. The
acquisition broadens our technical products platform, adding new
capabilities that will further accelerate our ability to grow in
existing, as well as new end markets," said John O'Donnell, Chief Executive Officer. "I'm
confident that with Julie
Schertell's leadership and Vectorply's experienced
management team, Neenah will deliver a seamless integration and
continue Vectorply's impressive record of profitable growth.
Financially, this investment is an attractive use of capital, with
a double-digit rate of return, and it will be immediately accretive
to our margins and our earnings."
Excluding one-time costs, the transaction is expected to be
accretive to earnings in year one, with annualized accretion of
over $0.25 per share. One-time
acquisition and integration costs in 2020 are projected to be less
than $2 million.
The acquisition is expected to be financed primarily through
borrowing currently available against the Company's existing
revolving credit facility, along with other funding as
necessary.
About Neenah, Inc.
Neenah is a leading global specialty materials company, focused
on premium niche markets that value performance and image. Key
products and markets include advanced filtration media, specialized
performance substrates used for digital transfer, tape and abrasive
backings, labels and other products, and premium printing and
packaging papers. The Company is headquartered in Alpharetta, Georgia and its products are sold
in over 80 countries worldwide from manufacturing operations in
the United States, Europe and the United Kingdom. Additional information can be
found at the Company's web site, www.neenah.com.
Cautionary Note Regarding Forward-Looking Statements
Certain statements in this press release may constitute
"forward-looking" statements as defined in Section 27A of the
Securities Act of 1933 (the "Securities Act"), Section 21E of
the Securities Exchange Act of 1934 (the "Exchange Act"), the
Private Securities Litigation Reform Act of 1995 (the "PSLRA"), or
in releases made by the U.S. Securities and Exchange Commission
("SEC"), all as may be amended from time to time. Statements
contained in this press release that are not historical facts may
be forward-looking statements within the meaning of the PSLRA and
we caution investors that any forward-looking statements we make
are not guarantees or indicative of future performance. These
forward-looking statements rely on a number of assumptions
concerning future events and are subject to risks, uncertainties
and other factors, many of which are outside of our control and
could cause actual results to materially differ from such
statements. Such risks, uncertainties and other factors include,
but are not necessarily limited to, those set forth under the
captions "Cautionary Note Regarding Forward-Looking Statements"
and/or "Risk Factors" of our latest Form 10-K filed with the
SEC as periodically updated by subsequently filed Form 10-Qs
(these securities filings can be located on our website at
www.neenah.com). Unless specifically required by law, we assume no
obligation to update or revise these forward-looking statements to
reflect new events or circumstances. These cautionary
statements are being made pursuant to the Securities Act, the
Exchange Act and the PSLRA with the intention of obtaining the
benefits of the "safe harbor" provisions of such laws.
Contact:
|
Neenah,
Inc.
|
|
Bill
McCarthy
|
|
Vice
President-Investor Relations
|
|
678-518-3278
|
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SOURCE Neenah, Inc.