Neenah Paper acquires Crane Technical Materials

NEENAH – Neenah Paper announced Thursday it will acquire the Massachusetts-based technical materials division from Crane & Co. for $72 million.

The agreement includes $64 million for the business and $8 million in future cash tax benefits Neenah Paper will receive as a result of the transaction. The deal may close in early July.

Crane Technical Materials, with annual sales of about $50 million, has two manufacturing operations in Pittsfield, Mass. It provides performance-oriented wet laid nonwovens media for fast-growing filtration end markets as well as environmental, energy and industrial uses.

“This acquisition clearly fits our strategy of expanding in profitable, performance-oriented markets with above-average growth rates, and provides a U.S. filtration presence that nicely complements our German-based filtration business,” John O’Donnell, CEO of Neenah Paper, said in a statement.

The company indicated around $2 million to $3 million of one-time costs are expected in 2014 related to the acquisition. Annual earnings are projected to be about 20 cents per share accretive, excluding one-time costs and benefits of lower cash taxes.

Neenah Paper is a leader in premium image and performance-based products, including filtration, specialized substrates used for tapes, labels and other products, and high-end printing papers. The company operates mills in Appleton, Neenah and Stevens Point.