Lydall, Inc., a leader in producing specialty engineered products for the thermal/acoustical and filtration/separation markets, has announced that it has acquired Texel, a division of ADS, Inc. and a leader in innovative technical materials, for approximately $96 million.
The transaction strengthens Lydall's position as an industry-leading, global provider of filtration and engineered materials and expands the Company's end markets into attractive adjacencies. Texel is a leading producer of non-woven needle punch materials serving the geosynthetic, liquid filtration, and other industrial segments. The acquired business consists of three manufacturing operations and one distribution centre located within the province of Quebec, Canada and has approximately 300 employees.Lydall, Inc., a leader in producing specialty engineered products for the thermal/acoustical and filtration/separation markets, has announced that it has acquired Texel, a division of ADS, Inc. and a leader in innovative technical materials, for approximately $96 million. The transaction strengthens Lydall's position as an industry-leading, global ...#
The business is expected to be fully integrated by 2018, and Lydall expects to leverage its operating discipline, business efficiencies, and economies of scale to generate estimated annual cost savings of approximately $2 million. These savings are not contingent upon anticipated revenue growth of approximately 5 percent per annum. The acquisition is expected to be accretive to Lydall's earnings, net of the effect of purchase accounting, and accretive to cash flow from operating activities within 12 months.
Lydall's financial results for the Second Quarter 2016 will include less than $2 million of expenses related to strategic initiatives, and it is estimated that approximately $1 million of additional non-recurring transaction and integration expenses related to the acquisition will be incurred over the second half of 2016. The acquisition will be included in Lydall's Industrial Filtration operating segment which will be renamed Technical Nonwovens. Each respective business will continue to approach the market and customers as they have prior to the combination given their respective strong brand recognition in the markets they serve.
Dale Barnhart, Lydall's president and chief executive officer said, “The acquisition of Texel is highly complementary as it diversifies our filtration and engineered materials business into attractive adjacent markets while leveraging our existing manufacturing capabilities and knowhow.”
Guy Drouin, chief executive officer of ADS said, “I am very excited for Texel to become a part of Lydall. Both Texel's and Lydall's commitment to upholding the highest standards of commercial and technical integrity, innovation, and quality makes our respective businesses the perfect fit.” (GK)
Fibre2fashion News Desk - India
News
Articles
Interviews
Webinars
Events
Advertise with us
About Us
Contact Us
Privacy Policy
Terms & Conditions
Cookie Policy
