Neenah, Inc. announced the signing of a definitive agreement to acquire Vectorply Corporation, a portfolio company of MSouth Equity Partners, for $155 million in cash. Closing is expected to occur on April 1, and is subject to customary conditions.
Excluding one-time costs, the transaction is expected to be accretive to earnings in year one, with annualized accretion of over $0.25 per share. One-time acquisition and integration costs in 2020 are projected to be less than $2 million.
The acquisition is expected to be financed primarily through borrowing currently available against the company’s existing revolving credit facility, along with other funding as necessary.
With annual sales of over $70 million, Vectorply is a leader in the manufacture of high-performance composite materials used in a variety of growing end markets.
