Neenah Expands its Technical Products Platform with Agreement to Acquire Vectorply

14 March 2020

ALPHARETTA, Ga., March 3, 2020 /PRNewswire/ -- Neenah, Inc. (NYSE: NP) today announced the signing of a definitive agreement to acquire Vectorply Corporation ("Vectorply"), a portfolio company of MSouth Equity Partners, for $155 million in cash. Closing is expected to occur on April 1, and is subject to customary conditions.

With annual sales of over $70 million, Vectorply is a leader in the manufacture of high-performance composite materials used in a variety of growing end markets. Vectorply has grown its top line at a high single digit rate over the past five years, with EBITDA margins in the mid-20's. The company is focused in North America, with its customers and supply chain predominantly in the United States, and operates out of one manufacturing facility in the Southeast.

"Vectorply is well-known for its product capabilities, utilizing product-enhancing fibers such as carbon, glass and aramid to produce purpose-built, non-woven reinforcement fabrics. The acquisition broadens our technical products platform, adding new capabilities that will further accelerate our ability to grow in existing, as well as new end markets," said John O'Donnell, Chief Executive Officer. "I'm confident that with Julie Schertell's leadership and Vectorply's experienced management team, Neenah will deliver a seamless integration and continue Vectorply's impressive record of profitable growth. Financially, this investment is an attractive use of capital, with a double-digit rate of return, and it will be immediately accretive to our margins and our earnings."

Excluding one-time costs, the transaction is expected to be accretive to earnings in year one, with annualized accretion of over $0.25 per share.  One-time acquisition and integration costs in 2020 are projected to be less than $2 million.

The acquisition is expected to be financed primarily through borrowing currently available against the Company's existing revolving credit facility, along with other funding as necessary.

About Neenah, Inc.  

Neenah is a leading global specialty materials company, focused on premium niche markets that value performance and image. Key products and markets include advanced filtration media, specialized performance substrates used for digital transfer, tape and abrasive backings, labels and other products, and premium printing and packaging papers. The Company is headquartered in Alpharetta, Georgia and its products are sold in over 80 countries worldwide from manufacturing operations in the United States, Europe and the United Kingdom. Additional information can be found at the Company's web site,

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking" statements as defined in Section 27A of the Securities Act of 1933 (the "Securities Act"), Section 21E of the Securities Exchange Act of 1934 (the "Exchange Act"), the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), or in releases made by the U.S. Securities and Exchange Commission ("SEC"), all as may be amended from time to time. Statements contained in this press release that are not historical facts may be forward-looking statements within the meaning of the PSLRA and we caution investors that any forward-looking statements we make are not guarantees or indicative of future performance. These forward-looking statements rely on a number of assumptions concerning future events and are subject to risks, uncertainties and other factors, many of which are outside of our control and could cause actual results to materially differ from such statements. Such risks, uncertainties and other factors include, but are not necessarily limited to, those set forth under the captions "Cautionary Note Regarding Forward-Looking Statements" and/or "Risk Factors" of our latest Form 10-K filed with the SEC as periodically updated by subsequently filed Form 10-Qs (these securities filings can be located on our website at Unless specifically required by law, we assume no obligation to update or revise these forward-looking statements to reflect new events or circumstances.  These cautionary statements are being made pursuant to the Securities Act, the Exchange Act and the PSLRA with the intention of obtaining the benefits of the "safe harbor" provisions of such laws.


Neenah, Inc.

Bill McCarthy

Vice President-Investor Relations



Neenah, Inc. (PRNewsfoto/Neenah, Inc.)


Cision View original content to download multimedia:

SOURCE Neenah, Inc.