09.11.16
Manchester, CT
www.lydall.com
2016 Nonwovens Sales: $400 million
Key Personnel
W. Leslie Duffy, chairman of the board; Dale Barnhart, president and CEO; Scott Deakin, CFO
Plants
Rochester, NH; Saint Rivalain, France; Green Island, NY; Heerlen, The Netherlands; Hamptonville, NC; Yadkinville, NC. Industrial Filtration locations: North Augusta, SC; Bethune, SC; Rawtenstall, U.K.; Bury U.K.; Stoke-on-Trent, U.K.; Wuxi, China; Shanghai, China
Brands
AppLY Mat, Arioso, Biotherm, CRS Wrap, Cryo-Lite, LydAir MG, LydAir MB, LydAir SC, LyPore Defender, LyPore MB, LyPore SC, LyPore XL, Lytherm, ManniGlas, Solupor, dBCore, dBLyte, ZeroClearance. Industrial filtration brands: Fiberlox, Checkstatic, Microfelt, Pleatlox, Ultratech, Powertech, Powerlox, Microcap, Duotech
Major Markets
Specialty insulation, high-efficiency air and liquid filtration media and automotive
Lydall, of Manchester, CT, capped off the year 2016 with another investment. This time it was MGF Gutsche, a German needlepuncher, for approximately $58 million in cash. The transaction will continue to strengthen Lydall’s role both in the filtration market as well as in other engineered technical material segments. The transaction closed December 31.
With production facilities in Germany and China, Gutsche’s key markets include industrial filtration and high performance nonwoven segments. Its 2016 were expected to reach $50 million.
“Our two companies could not fit together better,” says Dale Barnhart, Lydall CEO. “With our combined organizations, I am confident we will be able to provide superior value and services for our customers while creating value for our shareholders.”
The acquisition was integrated into Lydall’s Technical Nonwovens segment, which contains two divisions—industrial filtration and advanced nonwovens. Lydall created the Technical Nonwovens segment in July 2016 when it announced the acquisition of Texel, a Canadian needlepunch manufacturer. In 2016, this division comprised 27.4% of total sales or $155 million, and this figure should rise significantly in 2017, the first full year of Texel and Gutsche ownership.
While there are a number of synergies between Lydall and Gutsche—particularly in industrial filtration—the acquisition gives Lydall better access to the growing waste to incinerator filtration market, which comprises about 50% of filter sales. Meanwhile, about 20% of the acquired business falls outside of filtration in markets such as fiber block for transportation, heat protection, automotives and acoustic roll goods.
In addition to new market access, the acquisition provides Lydall with manufacturing sites in Germany and China, establishing Lydall with its first manufacturing presence in mainland Europe. Up until now, Lydall has been serving the greater European market from sites in the U.K., which has presented challenges related to logistics and currencies. Meanwhile, Gutcshe’s Chinese operations provide better access to the attractive Asia-Pacific markets, which have been underserved by Lydall’s legacy business, according to Barnhardt. Currently, about 75% of Gutsche’s sales are in the EMEA region, while about 20% are conducted in the Asia-Pacific region.
Michael Gutsche, CEO of Gutsche, comments, “I am very excited for Gutsche to become a part of the growing Lydall organization. We have found the ideal partner that shares our passion for delivering the most advanced and highest quality products in the industry. Our combined focus on profitable growth and the complementary nature of markets we serve will only further strengthen the excellent relationships we have with our suppliers and customers.”
“The advanced materials business provides us with products and markets that are attractive to us as we tried to diverse our offerings in the nonwovens segment,” Barnhart says. This diversification strategy was also proven through the Texel acquisition. About 50% of this company’s sales were in the geosynthetics market.”
The Texel business, which includes needlepunch nonwovens for filtration, geotextile and other technical areas, also falls within Lydall’s Advanced Nonwovens business, while Lydall’s industrial filtration division, includes the business acquired from Andrew Industries in 2014.
The acquisitions of Texel, Gutsche and Andrew will go a long way in helping Lydall achieve its goal of reaching the $800 million sales mark by 2018—in 2016 total corporate sales were $566 million and this figure should be boosted by about more than $100 million in 2017, thanks to the full integration of Texel and Gutsche.
Lydall’s existing nonwovens are grouped into two segments—Performance Materials and Thermal/Acoustical Fibers.
The Performance Materials segment, which represents about 19.6% of sales, includes filtration media solutions primarily for air, fluid power, and industrial applications, thermal insulation solutions for building products, appliances and energy and industrial markets as well as thermal insulation and air and liquid life science applications. Filtration products include LydAir MG (micro-glass) Air Filtration Media, LydAir MB (meltblown) Air Filtration Media, LydAir SC (synthetic composite) Air Filtration Media.
Meanwhile, the Thermal/Acoustical Fibers segment, representing 26.4% of sales, offers innovative engineered products to assist primarily in noise vibration and harshness (NVH) abatement within the transportation sector. Products are found in the interior (dash insulators, cabin flooring), underbody (wheel well, aerodynamic belly pan, fuel tank, exhaust) and under hood (engine compartment) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles.
www.lydall.com
2016 Nonwovens Sales: $400 million
Key Personnel
W. Leslie Duffy, chairman of the board; Dale Barnhart, president and CEO; Scott Deakin, CFO
Plants
Rochester, NH; Saint Rivalain, France; Green Island, NY; Heerlen, The Netherlands; Hamptonville, NC; Yadkinville, NC. Industrial Filtration locations: North Augusta, SC; Bethune, SC; Rawtenstall, U.K.; Bury U.K.; Stoke-on-Trent, U.K.; Wuxi, China; Shanghai, China
Brands
AppLY Mat, Arioso, Biotherm, CRS Wrap, Cryo-Lite, LydAir MG, LydAir MB, LydAir SC, LyPore Defender, LyPore MB, LyPore SC, LyPore XL, Lytherm, ManniGlas, Solupor, dBCore, dBLyte, ZeroClearance. Industrial filtration brands: Fiberlox, Checkstatic, Microfelt, Pleatlox, Ultratech, Powertech, Powerlox, Microcap, Duotech
Major Markets
Specialty insulation, high-efficiency air and liquid filtration media and automotive
Lydall, of Manchester, CT, capped off the year 2016 with another investment. This time it was MGF Gutsche, a German needlepuncher, for approximately $58 million in cash. The transaction will continue to strengthen Lydall’s role both in the filtration market as well as in other engineered technical material segments. The transaction closed December 31.
With production facilities in Germany and China, Gutsche’s key markets include industrial filtration and high performance nonwoven segments. Its 2016 were expected to reach $50 million.
“Our two companies could not fit together better,” says Dale Barnhart, Lydall CEO. “With our combined organizations, I am confident we will be able to provide superior value and services for our customers while creating value for our shareholders.”
The acquisition was integrated into Lydall’s Technical Nonwovens segment, which contains two divisions—industrial filtration and advanced nonwovens. Lydall created the Technical Nonwovens segment in July 2016 when it announced the acquisition of Texel, a Canadian needlepunch manufacturer. In 2016, this division comprised 27.4% of total sales or $155 million, and this figure should rise significantly in 2017, the first full year of Texel and Gutsche ownership.
While there are a number of synergies between Lydall and Gutsche—particularly in industrial filtration—the acquisition gives Lydall better access to the growing waste to incinerator filtration market, which comprises about 50% of filter sales. Meanwhile, about 20% of the acquired business falls outside of filtration in markets such as fiber block for transportation, heat protection, automotives and acoustic roll goods.
In addition to new market access, the acquisition provides Lydall with manufacturing sites in Germany and China, establishing Lydall with its first manufacturing presence in mainland Europe. Up until now, Lydall has been serving the greater European market from sites in the U.K., which has presented challenges related to logistics and currencies. Meanwhile, Gutcshe’s Chinese operations provide better access to the attractive Asia-Pacific markets, which have been underserved by Lydall’s legacy business, according to Barnhardt. Currently, about 75% of Gutsche’s sales are in the EMEA region, while about 20% are conducted in the Asia-Pacific region.
Michael Gutsche, CEO of Gutsche, comments, “I am very excited for Gutsche to become a part of the growing Lydall organization. We have found the ideal partner that shares our passion for delivering the most advanced and highest quality products in the industry. Our combined focus on profitable growth and the complementary nature of markets we serve will only further strengthen the excellent relationships we have with our suppliers and customers.”
“The advanced materials business provides us with products and markets that are attractive to us as we tried to diverse our offerings in the nonwovens segment,” Barnhart says. This diversification strategy was also proven through the Texel acquisition. About 50% of this company’s sales were in the geosynthetics market.”
The Texel business, which includes needlepunch nonwovens for filtration, geotextile and other technical areas, also falls within Lydall’s Advanced Nonwovens business, while Lydall’s industrial filtration division, includes the business acquired from Andrew Industries in 2014.
The acquisitions of Texel, Gutsche and Andrew will go a long way in helping Lydall achieve its goal of reaching the $800 million sales mark by 2018—in 2016 total corporate sales were $566 million and this figure should be boosted by about more than $100 million in 2017, thanks to the full integration of Texel and Gutsche.
Lydall’s existing nonwovens are grouped into two segments—Performance Materials and Thermal/Acoustical Fibers.
The Performance Materials segment, which represents about 19.6% of sales, includes filtration media solutions primarily for air, fluid power, and industrial applications, thermal insulation solutions for building products, appliances and energy and industrial markets as well as thermal insulation and air and liquid life science applications. Filtration products include LydAir MG (micro-glass) Air Filtration Media, LydAir MB (meltblown) Air Filtration Media, LydAir SC (synthetic composite) Air Filtration Media.
Meanwhile, the Thermal/Acoustical Fibers segment, representing 26.4% of sales, offers innovative engineered products to assist primarily in noise vibration and harshness (NVH) abatement within the transportation sector. Products are found in the interior (dash insulators, cabin flooring), underbody (wheel well, aerodynamic belly pan, fuel tank, exhaust) and under hood (engine compartment) of cars, trucks, SUVs, heavy duty trucks and recreational vehicles.
