Lydall has acquired the industrial filtration business belonging to Andrew Industries for a deal valued at $83 million in cash. The acquisition strengthens Lydall's position as an industry-leading global provider of filtration and engineered material products and diversifies the company's end markets and geographic revenue base.
Andrew is a leading global manufacturer and supplier of nonwoven filtration felt media and filter bags for industrial air filtration applications. In the U.S., these products are sold under brands Southern Felt while in Europe they are known as Andrew Webron and in Asia as China Felt Company. Nonwoven filter media is the most commonly used filter technology to satisfy increasing emission control regulations in a wide range of industries including power, cement, steel, asphalt, incineration, food and pharmaceuticals. The acquired business consists of operations in the U.S., the U.K. and China and approximately 500 employees.
In 2013, Andrews' sales were about $127 million. The acquisition is expected to benefit Lydall's full year earnings and free cash flow.
"The acquisition of Andrew Filtration expands our global footprint, adds complementary and new technologies as well as substantial scale that provides a platform for long-term growth and better positions us to deliver meaningful shareholder value," says Dale Barnhart, Lydall's filtration and engineered materials segments are expected to contribute approximately 50% of Lydall's consolidated revenue. We expect new growth opportunities will result from manufacturing and selling complementary products and leveraging Andrew Filtration's well established presence in faster growing Asian markets."