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Neenah Paper picking up Coldenhove
Posted on Wednesday, 11 October 2017 14:02
New York-listed premium paper manufacturer Neenah Paper has unveiled the signing of a definitive agreement, under which it will acquire WA Sanders Coldenhove, its Dutch peer.
Under the terms of the transaction, the buyer will pay around USD 45.00 million for the business, subject to adjustments upon closing.
The deal will be financed using cash on hand, as well as short term borrowings.
Commenting on the purchase, Neenah chief executive stated: "This acquisition adds to our technical products portfolio with products, technologies and a customer base that nicely complement our existing digital transfer business, further accelerating our participation in profitable growing markets.
"From a financial perspective, the investment provides an attractive return on capital, is immediately accretive, and will deliver mid-teen EBITDA margins in a growing market."
Completion of the deal is expected to follow on 1st November, subject to certain unspecified conditions.
Further details of the takeover are expected to be disclosed as part of the buyer’s earnings call for the third quarter of 2017, which is due to take place on 8th November.
According to Zephyr, the M&A database published by Bureau van Dijk, Neenah Paper’s most recent acquisition closed in August 2015, when it paid USD 123.00 million in cash for speciality coating player ASP FiberMark.
Previous targets have included Crane Technical Materials and certain premium brands of Wausau Paper.
Coldenhove was established in 1661 and is active in a number of markets, such as the packaging, office supply, digital décor printing and dye sublimation transfer printing segments.
The company has until now been an independent, family-run business for the entirety of its history.
Zephyr shows there have been 77 deals targeting paper mill operators announced worldwide during 2017.
The most valuable of these involved Rayonier Advanced Materials picking up Canadian chemical products maker Tembec for USD 866.00 million.
© Zephus Ltd