Neenah Inc. terminates $155M acquisition deal for Alabama fabric maker Vectorply
April 21, 2020
ALPHARETTA, Ga. (From news reports) -- Neenah Inc. is terminating a $155 million deal to acquire an Alabama composite reinforcement fabrics company in Alabama.
Alpharetta-based specialty materials company Neenah had announced plans last month to acquire Vectorply Corp., a portfolio company of MSouth Equity Partners, on April 1 for $155 million in cash.
But in an April 2 statement, the company announced it had not closed on the agreement as originally planned. CEO John O'Donnell said, "Regarding our ongoing business during this challenging time, the health and safety of our employees are paramount and we've taken actions across our company to protect them, while also carefully managing costs, capital expenditures and working capital. We exited 2019 with a conservative leverage position and our liquidity today is strong. Our primary near-term focus is the health and welfare of our employees and business, and we feel confident in our ability to weather the current crisis."
The company filed a Form 8-K with the Securities and Exchange Commission April 14 that said it entered into a Settlement, Release and Indemnification Agreement with Vectorply Corp. and MSouth Equity Partners L.P. on April 10.
Based in Phenix City, Ala., Vectorply develops, manufactures and distributes more than 350 unique styles of composite reinforcement fabrics engineered to optimize stiffness, strength, weight and cost for customer-specific applications. The fabrics are created through stitch-bonding fibers such as E-glass, carbon, aramid in a variety of weights and architectures, it said.
Founded in 2007, MSouth manages $2.2 billion across four funds. The private equity investment firm provides equity capital and expertise to support management teams in acquisitions and recapitalizations of lower middle market companies typically valued between $25 and $200 million.