Gutsche, which has operations in Germany and China, produces nonwoven needle punch materials serving the industrial filtration and high performance nonwoven segments. The company is forecasting 2016 revenue of approximately US$50 million and EBITDA of US$6 million.
The acquisition involves all of the Gutsche-branded businesses, including the High Performance Filtration and Nonwovens businesses which operate under MGF Gutsche GmbH & Co KG in Germany and Gutsche Environmental Technology (Yixing) Co Ltd in China.
Dale Barnhart, Lydall’s president and CEO, said: “The acquisition of Gutsche is very appealing as it combines two complementary companies in the industrial filtration and technical materials markets. With the addition of Gutsche, we gain an experienced management team and an attractive footprint to serve Europe as well as secure a strong filtration position in the fast growing waste-to-energy incineration market. In addition, we are able to complement our China-based sales with a focus on the greater Asia-Pacific export markets.”
Michael Gutsche, president of Gutsche, said: “With Lydall, we have found the ideal partner who will support Gutsche’s continued growth in the long term and further expand its excellent position in the industries we serve. Our very important and long-standing client relationships will continue and, upon consummation of the acquisition, will enjoy the full support of a new global market leader.”
The acquisition will be integrated into Lydall’s Technical Nonwovens segment. Lydall plans to maintain manufacturing presence in Europe and China and, through restructuring initiatives, to increase efficiencies and unlock operational synergies.
The transaction is expected to close at the end of the year, subject to receipt of customary merger control approval from German competition authorities and the completion of specified closing conditions.