Lydall, Inc has entered into an agreement to acquire Interface Performance Materials for US$265m in cash. The transaction will reportedly further advance Lydall’s engineered materials offering in new markets with similar technologies utilised in the company’s Performance Materials business. Interface delivers complete sealing solutions with a comprehensive product portfolio, in-house technical capabilities and vertical integration. The transaction is expected to close in the Third Quarter of 2018, subject to the completion of specified closing conditions, including receipt of customary merger control approval from US authorities.
Interface’s reported sales and adjusted EBITDA for the fiscal year ended 31 December 2017 were US$142m and US$26m, respectively. The business is expected to achieve sales of approximately US$150m and adjusted EBITDA of approximately US$29m in the following 12 months ending 31 August 2018. Lydall expects to leverage its business efficiencies, operating discipline and economies of scale to generate an estimated annual cost savings of approximately US$4m by 2020.
As a leader in fibre-based wetlaid production, Lydall says it will leverage manufacturing expertise with plans to optimise supporting functions throughout the business. The Interface business will become part of the Performance Materials operating segment with the expectation to complete integration within one year of closing.
Dale G Barnhart, Lydall’s president and CEO, says: “Interface Performance Materials expands our engineered materials portfolio with favourable margins while further shifting our concentration away from Automotive, which continues to be the focus of our long-term strategy. Interface is very well known in the industry for providing high-quality solutions and is uniquely positioned with deep in-house expertise for research, design, testing, production and fabrication.”
Victor Swint, president and CEO of Interface Performance Materials, says: “Lydall’s goals are well aligned with our core values, including commitment to integrity, performance and innovation, and with this transaction, we will continue to deliver best-in-class products and solutions. This is a significant next chapter for Interface, and I am incredibly excited about our future with Lydall.”
