Nip Impressions logo
Mon, Jan 25, 2021 07:54
Click here for Pulp & Paper Radio International
Subscription Central
Must reads for pulp and paper industry professionals
My Profile
Management Side
Neenah Paper to Acquire Vectorply for $155 Million
ALPHARETTA, Ga. (News release) -- Neenah, Inc. announced the signing of a definitive agreement to acquire Vectorply Corporation, 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.

Printer-friendly format


Powered by Bondware
News Publishing Software

The browser you are using is outdated!

You may not be getting all you can out of your browsing experience
and may be open to security risks!

Consider upgrading to the latest version of your browser or choose on below: