Neenah Paper, Inc. announced that it has completed the purchase of certain premium business paper brands from the Southworth Company. These brands, including Southworth, the category leader, are sold largely to major retail customers such as Staples, Office Depot, Office Max and Walmart. Annual sales from the acquired brands are approximately $20 million.
"As the market leader in premium papers, this is a natural extension of our Fine Paper business. The addition of Southworth's well-regarded brands allows us to expand our presence in the retail channel and fits with our strategy to grow in profitable niches that value image and performance," said Julie Schertell , President - Fine Paper. "We have been pleased with the reception from our customers and our team is excited to market these brands as part of Neenah's portfolio."
The purchase was financed through the Company's existing credit facility and cash on hand. Other terms of the purchase agreement were not disclosed. Additional information about the purchase will be shared in the Company's Fourth Quarter Earnings Call on February 21, 2013.