Lydall, Inc has acquired Andrew Filtration; the industrial filtration business of Andrew Industries Limited, located in Altham, UK for $83 million in cash.
According to Lydall, the transaction strengthens its position as a global provider of filtration and engineered materials products and diversifies the Company's end markets and geographic revenue base.Lydall, Inc has acquired Andrew Filtration; the industrial filtration business of Andrew Industries Limited, located in Altham, UK for $83 million in#
Andrew Filtration is a manufacturer and supplier of non-woven felt filtration media and filter bags used primarily in industrial air filtration applications.
Andrew Filtration's products are sold under the brands Southern Felt in the United States, Andrew Webron in Europe and China Felt Company in Asia.
“Non-woven filter media is the most commonly used filter technology to satisfy increasing emission control regulations in a wide range of industries,” Lydall said in a press statement.
The acquired business consists of operations in the United States, the United Kingdom and China and approximately 500 employees.
For the year ended December 31, 2013, Andrew Filtration's unaudited revenue was approximately $127 million and unaudited EBITDA was approximately $14 million, excluding non-recurring items.
Once the business is fully integrated, Lydall expects to leverage its operating discipline and support functions to generate anticipated annual cost savings of approximately $4 million by 2016.
The acquisition is expected to be accretive to Lydall's 2014 full-year earnings and free cash flow, inclusive of transaction expenses, the effect of inventory step-up, and incremental amortisation of intangible assets.
The acquisition is being financed through a combination of cash-on-hand and $60 million of borrowings from the Company's recently expanded $100 million revolving credit facility.
Dale Barnhart, Lydall's CEO said, "The acquisition of Andrew Filtration expands our global footprint, adds complementary and new technologies.”
Barnhart added, "With this acquisition, Lydall's filtration and engineered materials segments are expected to contribute approximately 50 per cent of Lydall's consolidated revenue.”
“We also expect to apply Lydall Lean Six Sigma principles to the acquired businesses and achieve margin and working capital improvements as we have previously demonstrated in our existing operations," he noted.
C W Downer & Co., an independent global middle-market investment bank acted as exclusive financial advisor to Lydall on this acquisition. (AR)
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