ALPHARETTA – Neenah has confirmed that it has been unable to complete its planned US$155 million acquisition of Vectorply Corporation.
Neenah announced earlier this year that it was looking to expand its technical products platform by acquiring Vectorply Corporation from MSouth Equity Partners.
Confirming the delay, John O'Donnell, Chief Executive Officer, said: "Regarding our ongoing business during this challenging time, the health and safety of our employees are paramount and we've taken actions across our company to protect them, while also carefully managing costs, capital expenditures and working capital."
He continued: "We exited 2019 with a conservative leverage position and our liquidity today is strong. Our primary near-term focus is the health and welfare of our employees and business, and we feel confident in our ability to weather the current crisis."
At this stage, no details of a potential completion date have been given.
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 which has been experiencing strong, double-digit growth in its sales and profitability over the past few years.
The company is focused in North America, with its customers and supply chain predominantly in the USA and operates out of a single manufacturing facility Phenix City, Alabama. It is well-known for its product capabilities, utilising product-enhancing fibres such as carbon, glass and aramid to produce purpose-built, nonwoven reinforcement fabrics.
Neenah came into existence following the spin-off by Kimberly-Clark of its technical products and fine paper businesses in 2004 and has grown significantly in the field of technical nonwovens in recent years.