Lydall Shrugging Off The Auto Worries
Fri, Jul. 8, 12:19 PM
- Lydall (LDL +3.3%) announces that it has acquired Texel, a division of ADS (OTC:ADST), for approximately $96M in cash.
- The company says the transaction strengthens Lydall’s position as an industry-leading, global provider of filtration and engineered materials and expands its end markets into attractive adjacencies.
- Textel generated revenue of approximately $72M and adjusted EBITDA of approximately $12M during the last fiscal year.
- Lydall expects to leverage its operating discipline, business efficiencies, and economies of scale to generate estimated annual cost savings of approximately $2M. The acquisition is expected to be accretive to Lydall’s earnings, net of the effect of purchase accounting, and accretive to cash flow from operating activities within 12 months.
- The acquisition was financed through a combination of cash on hand and $85M of borrowings from borrowings from the Company’s amended revolving credit facility, which was increased to $175M.
- Source: Press Release