Neenah Paper to Acquire Crane Technical Materials for $72 Million
Crane's technical materials are used in a variety of applications — one such application being filtration units.
June 5, 2014 - Neenah Paper, Inc. today announced it signed a definitive agreement to purchase all of the outstanding equity of Crane Technical Materials, Inc. (CTM) from Crane & Co., Inc. for $72 million, comprised of $64 million for the business and $8 million related to future cash tax benefits Neenah will receive as a result of the transaction.
Crane Technical Materials, with annual sales of approximately $50 million and two manufacturing operations in Pittsfield, Massachusetts, provides performance-oriented wet laid nonwovens media for fast growing filtration end markets as well as environmental, energy and industrial uses.
"This acquisition clearly fits our strategy of expanding in profitable, performance-oriented markets with above average growth rates, and provides a US filtration presence that nicely complements our German-based filtration business," said John O'Donnell, Neenah's CEO. "From a financial standpoint, this investment provides an attractive rate of return, is not dilutive to our mid-teen EBITDA margins, and is accretive to earnings. Most importantly, CTM brings new technologies that provide a platform for future growth and increase our ability to be a global supplier of choice for our customers."
Neenah indicated approximately $2 to $3 million of one-time costs are expected in 2014 related to the acquisition. Annual earnings are expected to be approximately $0.20 per share accretive, excluding one-time costs and benefits of lower cash taxes.
According to Neenah, the deal will be financed primarily through available cash on hand and the transaction is expected to close in early July and is subject to customary closing conditions.
Neenah is a leader in premium image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers. To learn more, please visit: www.neenahpaper.com.
SOURCE: Neenah Paper, Inc.