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Neenah to Acquire Paper and Cardboard Products Maker ITASA
Wednesday 03 March 2021

US-based specialty materials manufacturer Neenah, Inc. (NYSE: NP) has signed a definitive agreement to acquire Global Release Liners, S.L., the parent company of Spain-based paper and cardboard products maker Industrias de Transformacion de Andoain, S.A., from Magnum Capital and other minority shareholders for EUR 205m (USD 247.29m) in cash, the company said.

Closing is expected to occur in early April and is subject to customary conditions.

ITASA is a global coater and converter of release liners used in hygiene, tapes, industrial, labels, composites and various other end markets.

With COVID-impacted sales of USD 120m in 2020, Neenah expects sales of approximately USD 140m in 2021 and consistent, pre-synergy mid-teen EBITDA margins.

ITASA has historically grown sales by more than 8% annually and serves global markets from its operations in Spain, Mexico and Malaysia.

The acquisition will be financed by enlarging Neenah's existing Term Loan B from USD 200m to an expected USD 450m, with a more favorable interest rate.

Following the transaction, Neenah will continue to maintain a strong liquidity position, with no borrowings against its USD 175m revolving credit facility and projected debt to EBITDA of approximately three times.

Perella Weinberg Partners LP served as Neenah's exclusive financial adviser in the transaction and JPMorgan Chase Bank, N.A. is leading Neenah's financing efforts.

Neenah has manufacturing facilities in the United States, Europe and the United Kingdom. The company is a global manufacturer of specialty materials serving customers across six continents, with headquarters in Alpharetta, GA.

It is focused on growing in filtration media, specialty coatings, custom-engineered materials and premium packaging.
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Date Published: 03/03/2021

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