April 8, 2021 - Neenah, Inc. on April 6 announced that it completed the previously announced agreement to acquire Global Release Liners, S.L., the parent company of Industrias de Transformacion de Andoain, S.A. ("ITASA"), from Magnum Capital and other minority shareholders.
ITASA is a leading global coater and converter of release liners used in fast-growing hygiene, tapes, industrial, labels, composites and various other end markets. With COVID-impacted sales of $120 million in 2020, Neenah expects sales of approximately $140 million in 2021 and consistent, pre-synergy mid-teen EBITDA margins. ITASA has historically grown sales by more than 8 percent annually and serves global markets from its operations in Spain, Mexico and Malaysia.
"Neenah's strategy is to drive long-term value creation by accelerating performance in our four targeted growth platforms," said Julie Schertell, Chief Executive Officer of Neenah. "The acquisition of ITASA, with its advanced coating capabilities and strong market reputation for technical expertise, new product development and premium performance, provides us with an opportunity to meaningfully accelerate our presence in specialty coatings.
"The release liner market is a large, growing market and ITASA gives us a strong foundation to build upon, while complementing our organic initiatives with overlapping paths to market and customers.
"With a double-digit rate of return, earnings accretion and up to $4 million per year of synergies, this acquisition is an attractive use of capital and allows us to maintain our strong balance sheet and financial position. ITASA's impressive long-term record of profitable, capital-efficient growth is a testament to their talented management team, and I'm excited about their potential to create additional value as part of Neenah," Schertell concluded.
Headquartered in Alpharetta, Georgia, Neenah is a leading global specialty materials company. Key products and markets include advanced filtration media, specialized performance substrates used for digital transfer, tape and abrasive backings, labels and other products, and premium printing and packaging papers. To learn more, visit: www.neenah.com.
SOURCE: Neenah, Inc.
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