PaperAge Magazine

Neenah Paper to Acquire Netherlands-based Coldenhove for $45 Million

Coldenhove Papier Coldenhove is a specialty materials manufacturer based in the Netherlands, with a leading position in digital transfer media and other technical products.

Oct. 11, 2017 - Neenah Paper, Inc. today announced it had signed a definitive agreement to purchase all of the outstanding equity of W.A. Sanders Coldenhove Holding B.V. ("Coldenhove"). Coldenhove is a specialty materials manufacturer based in the Netherlands, with a leading position in digital transfer media and other technical products.

The company's trade name is Coldenhove Papier.

Coldenhove has annual sales of over $45 million with EBITDA of approximately $6 million. The company's advanced media is a critical component used in dye sublimation, a growing method of digital image transfer.

The purchase price is expected to be approximately $45 million, subject to final closing adjustments, and will be financed with available cash and short term borrowings. Closing is expected to occur on November 1, and is subject to customary conditions.

"This acquisition adds to our technical products portfolio with products, technologies and a customer base that nicely complement our existing digital transfer business, further accelerating our participation in profitable growing markets," said John O'Donnell, Chief Executive Officer.

"From a financial perspective, the investment provides an attractive return on capital, is immediately accretive, and will deliver mid-teen EBITDA margins in a growing market."

Additional details about the acquisition will be discussed in Neenah's third quarter earnings call on November 8th.

Neenah is a leading global specialty materials company, focused on premium niche markets. Key products and markets include advanced filtration media, specialized performance substrates used for tapes, labels and other products, and premium printing and packaging papers. To learn more, please visit: www.neenahpaper.com.

SOURCE: Neenah Paper, Inc.