Neenah Paper Incorporated has agreed to purchase all of the outstanding equity of ASP FiberMark, LLC from an affiliate of American Securities LLC for $120 million. With annual sales of over $160 million, FiberMark is a specialty coating and finishing company with a strong presence in luxury packaging and overlapping technical product categories. The company sells globally, including to Canada, from six production facilities in the United States and one in the United Kingdom.
Neenah expects one-time costs in 2015 of approximately $5 million for transaction fees and integration, with synergies exceeding $6 million per year within three years. The acquisition will be financed approximately equally between cash on hand and borrowing against the Company’s revolving credit facility – and is expected to close on July 31, subject to customary conditions. Additional details will be discussed during the company’s second quarter earnings call scheduled for August 6.