Neenah Paper, Inc. has completed the purchase of Crane Technical Materials, Inc. from Crane & Co., Inc. The company, to be renamed Neenah Technical Materials, provides performance-oriented wet laid nonwovens media for fast growing filtration end markets as well as for environmental, energy and industrial uses. Annual sales of approximately $50 million are supported through two manufacturing operations located in Pittsfield, MA.
"We are excited to move forward now as a company with an expanded manufacturing platform serving a broader base of filtration and other performance-oriented technical markets and customers," said John O'Donnell, Chief Executive Officer. "This acquisition clearly fit our strategy of expanding in profitable specialty niche markets with above average growth rates and attractive financial returns. In addition, it nicely complements our European filtration business and provides new technologies that represent a platform for future growth."
The purchase price of $72 million, comprised of $64 million for the business and $8 million related to future cash tax benefits, was financed through cash on hand. As previously announced, approximately $2 to $3 million of one-time costs are expected in 2014 related to the acquisition. Annual earnings, excluding these one-time costs and benefits of lower cash taxes, are expected to be approximately $0.20 per share accretive.