Neenah Paper Buys ASP FiberMark - Papermart

Neenah Paper Buys ASP FiberMark

Acquisition may deliver synergies of USD 6 million per year within 3 years

August 3, 2015

Neenah Paper, Inc. had completed the previously announced purchase of all of the outstanding equity of ASP FiberMark, LLC from an affiliate of American Securities LLC on August 1, 2015, as the company said in the press release received by Lesprom Network.

The acquisition is expected to deliver synergies of USD 6 million per year within three years, with ongoing accretion (excluding one-time costs) of over USD 0.40 per share. The Company indicated it expects one-time costs in 2015 of approximately USD 5 million for transaction fees and integration.

The purchase price of USD 120 million, subject to adjustments for acquired cash and a working capital true up, resulted in a cash payment of USD 123 million at closing, and was financed through USD 80 million of cash on hand and the balance from available borrowing capacity on the Company’s revolving credit facility.

FiberMark, with annual sales of over USD 160 million, is a specialty coating and finishing company with a strong presence in luxury packaging and overlapping technical product categories. Neenah Paper is a leading global specialty materials company, focused on premium niche markets that value performance and image.