The company, to be renamed Neenah Technical Materials, provides performance-oriented wet laid nonwovens media for filtration end markets as well as for environmental, energy and industrial uses. Neenah Technical Materials has annual sales of approximately US$50 million and two manufacturing operations in Pittsfield, Massachusetts, USA.
“We are excited to move forward now as a company with an expanded manufacturing platform serving a broader base of filtration and other performance-oriented technical markets and customers,” said John O'Donnell, Neenah Paper CEO. “This acquisition clearly fit our strategy of expanding in profitable specialty niche markets with above average growth rates and attractive financial returns. In addition, it nicely complements our European filtration business and provides new technologies that represent a platform for future growth.”
The US$72 million purchase price, comprised of US$64 million for the business and US$8 million related to future cash tax benefits, was financed through cash on hand. Approximately US$2 million–3 million of one-time costs are expected in 2014 related to the acquisition.