MANCHESTER, Conn., Jan. 03, 2017 (GLOBE NEWSWIRE) -- Lydall, Inc. (NYSE:LDL), today announced that it completed the previously announced purchase of MGF Gutsche GmbH & Co. KG on December 30, 2016 for $58 million in cash. The Company used $32 million of borrowings from its existing revolving credit facility and the remainder was paid from cash on hand.
The transaction positions Lydall as a global leader in needle punch nonwoven filtration solutions and strengthens the Company’s position as a premier provider of engineered technical materials. The acquisition expands the Company’s filtration and engineered materials product offerings into attractive adjacencies and diversifies the Company's geographic revenue base.
Gutsche is a leading producer of nonwoven needle punch materials serving the industrial filtration and high performance nonwoven segments. The business consists of operations in Germany and China.
The Gutsche businesses will be integrated into Lydall’s Technical Nonwovens segment. The Company plans to maintain manufacturing presence in the UK, Europe, and China and, through restructuring initiatives, to increase efficiencies and unlock operational synergies. The acquisition will be dilutive to Lydall’s earnings in 2017 on an all-in basis, which includes the effect of purchase accounting, restructuring and other non-recurring expenses. The acquisition is expected to be accretive to Lydall’s earnings by mid-2018.
Dale G. Barnhart, Lydall’s President and Chief Executive Officer, stated, “I am very excited to have completed the acquisition of Gutsche as it combines two complementary companies in the industrial filtration and technical materials markets. With the addition of Gutsche, we gain an experienced management team and an attractive footprint to serve Europe as well as secure a strong filtration position in the fast growing waste-to-energy incineration market. In addition, we are able to complement our China-based sales with a focus on the greater Asia-Pacific export markets. Gutsche is a well-known leading brand in the industry with an excellent reputation for high quality products and a proven culture of innovation.”
About Lydall
Lydall, Inc. (NYSE:LDL) is a New York Stock Exchange listed company, headquartered in Manchester, Connecticut with global manufacturing operations producing specialty engineered products for the thermal/acoustical and filtration/separation markets. For more information, please visit http://www.lydall.com. Lydall® is a registered trademark of Lydall, Inc. in the U.S. and other countries.
