Neenah Paper Inc., Alpharetta, Ga., USA, this week announced that it completed the previously announced purchase of all of the outstanding equity of ASP FiberMark LLC from an affiliate of American Securities LLC on August 1.

FiberMark, with annual sales of more than $160 million, is a specialty coating and finishing company with a strong presence in luxury packaging and overlapping technical product categories. The acquisition is expected to deliver synergies of $6 million per year within three years, with ongoing accretion (excluding one-time costs) of more than $0.40 per share. The company indicated it expects one-time costs in 2015 of approximately $5 million for transaction fees and integration. 

 

The purchase price of $120 million, subject to adjustments for acquired cash and a working capital true up, resulted in a cash payment of $123 million at closing, and was financed through $80 million of cash on hand and the balance from available borrowing capacity on the company's revolving credit facility. 

 

Neenah is a global specialty materials company. Its key products and markets include advanced filtration media, specialized performance substrates used for tapes, labels, and other products, and premium printing and packaging papers. Its products are sold in more than 70 countries worldwide from manufacturing operations in the U.S., Germany, and the U.K.