Lydall Inc has entered into an agreement to acquire engineered sealing solutions company Interface Performance Materials for US$265 million in cash.
Headquartered in Lancaster, Pennsylvania, Interface Performance Materials manufactures and provides advanced materials, sealing solutions, thermal management systems and specialty products. Interface partners with OEMs and Tier I manufacturers in markets such as agriculture, construction, earthmoving, industrial and automotive.
Interface has manufacturing sites in the US, Germany and India. The company had sales of US$142 million and adjusted EBITDA of US$26 million for the fiscal year ended 31 December 2017. The business is expected to achieve sales of approximately US$150 million and adjusted EBITDA of around US$29 million in the trailing 12 months ending 31 August 2018.
Once the acquisition is completed, the Interface business will become part of Lydall’s Performance Materials operating segment.
Lydall says that the acquisition will further advance its engineered materials offering in new markets with similar technologies utilized in its Performance Materials business.
“We are extremely excited about yet another transformational acquisition for Lydall,” said Dale Barnhart, Lydall’s president and CEO. “Interface Performance Materials expands our engineered materials portfolio with favourable margins while further shifting our concentration away from Automotive, which continues to be the focus of our long-term strategy. Interface is very well known in the industry for providing high-quality solutions and is uniquely positioned with deep in-house expertise for research, design, testing, production and fabrication.”
Victor Swint, president and CEO of Interface Performance Materials, said: “I am proud of the company we have built and am excited that Interface will have the opportunity to achieve even greater success as part of Lydall.”
New York Stock Exchange-listed Lydall produces specialty engineered products for the thermal/acoustical and filtration/separation markets.