SWM, a supplier of highly engineered solutions and advanced materials is acquiring Conwed Plastics LLC, a producer of engineered resin based netting solutions. The deal which has been signed for $295 million in cash, also offers significant operating synergy opportunities with the Advanced Materials & Structures (AMS) segment operations of SWM.

As per the transaction structure and tax basis step-up, SWM is projecting tax benefits realisation with an estimated net present value of around $75 million.

According to the company, assuming all tax benefits fructify, the after-tax economic cost of the transaction is estimated to be around $220 million, which also includes potential long term earn out payments.

Conwed’s netting products are used in highway infrastructure development, oil and gas exploration, filtration, and construction. (AR)