Specialty materials manufacturers Schweitzer-Mauduit International, Inc. (SWM) and Neenah, Inc. (NP) announced Monday that they have agreed to combine in an all-stock merger of equals with combined revenues of approximately $3 billion.
This transaction brings together two organizations with highly complementary technologies, geographies and product portfolios in specialty materials.
Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, shareholders of Neenah will receive 1.358 shares of SWM common stock for each share of Neenah common stock owned.
Following the closing of the transaction, SWM shareholders will own approximately 58 percent of the combined company, and Neenah shareholders will own approximately 42 percent of the combined company, in each case, on a fully diluted basis.
The transaction is expected to achieve at least $65 million in annual run-rate cost synergies within 24 to 36 months post close.
The combined company will remain headquartered in Alpharetta, Georgia and will be led by a proven management team that reflects the strengths and capabilities of both organizations.
Upon close, Julie Schertell, President and Chief Executive Officer of Neenah, will serve as President and Chief Executive Officer of the combined company. A new name for the combined company will be selected in connection with the merger.
The merger is expected to close in the second half of 2022, subject to Neenah and SWM shareholder approval, regulatory approvals and other customary closing conditions.
Source: Read Full Article