The strategic combination creates a US$3 billion global leader in specialty materials with strong positions in growing markets including filtration.
Under the terms of the agreement, Neenah shareholders will receive 1.358 shares of SWM for each Neenah share they own. When the transaction closes, SWM shareholders will own approximately 58% of the combined company, and Neenah shareholders 42%.
The combined company will remain headquartered in Alpharetta, Georgia, USA.
When the deal closes, Julie Schertell, president and CEO of Neenah, will serve as president and CEO of the combined company, and Dr Jeff Kramer, CEO of SWM, will be a strategic advisor. John D Rogers, non-executive chairman of the SWM board, will serve as non-executive chair of the combined company’s board. The new board will have nine directors, five from the SWM board and four from the Neenah Board, including Schertell.
“This merger is an exciting next step on our journey and one that will deliver significant shareholder value,” said Dr Jeff Kramer, CEO of SWM. “We are excited by the numerous benefits of this merger, including the significantly broadened customer base, product lines and technical expertise.”