Karen McIntyre, Editor09.09.16
This summer Lydall announced it would acquire Canadian needlepunch manufacturer Texel with the hopes of not only increasing its sales but also upping its exposure into markets like liquid filtration and automotives. Lydall used a similar strategy a few years ago when it acquired Andrew Industries, giving itself a leg up into the baghouse filtration market.
The Andrew business, which was known as Lydall Industrial Filtration, provided Lydall with its first foray into needlepunch technology, while the Texel acquisition expands its footprint in this market and broadens its scope into new markets.
Based in Canada, Texel’s sales were $72 million last year.
And if Lydall executives are to be believed, these to acquisitions are just the beginning for the company. CEO Dale Barnhart told investors that the synergies between Lydall and Andrew have exceeded expectations during the past two years, and acquisitions will continue to be on the radar for Lydall as it looks to grow into new markets and geographies.
“We will do it in an orderly manner,” he said. “We are not going out with reckless abandon. As we did with Andrew, we found another great opportunity with Texel.”
The two acquisitions will be grouped into Lydall’s recently renamed technical nonwovens division and together they add about $200 million to the company’s nonwovens sales while providing an entry into several key markets for Lydall.
Nonwovens manufacturers are no strangers to mergers and acquisitions, of course. Avintiv/PGI Nonwovens made a habit of acquisition in its quest to become the world’s largest nonwovens producer (before being acquired itself by Berry Plastics), and many of the world’s largest nonwovens manufacturers—Ahlstrom, Suominen, Fitesa, Glatfelter—have made their way to the top by swallowing up another company.
All of this M&A activity can make the top companies report a challenge each year. Every time one company disappears into the folds of another, a new company needs to be uncovered.
This year we welcome three new companies—Shalag Nonwovens, Saudi German Nonwovens and Daiwabo—to the top companies report. Next year we already know that DuPont will appear as a new company for the first time as DowDuPont, and, of course, the inclusion of Texel’s business will give Lydall a nice boost, but it’s too soon to know how M&A activity will influence next year’s results beyond that.
As always, we appreciate your comments.
Karen McIntyre
Editor
kmcintyre@rodmanmedia.com
The Andrew business, which was known as Lydall Industrial Filtration, provided Lydall with its first foray into needlepunch technology, while the Texel acquisition expands its footprint in this market and broadens its scope into new markets.
Based in Canada, Texel’s sales were $72 million last year.
And if Lydall executives are to be believed, these to acquisitions are just the beginning for the company. CEO Dale Barnhart told investors that the synergies between Lydall and Andrew have exceeded expectations during the past two years, and acquisitions will continue to be on the radar for Lydall as it looks to grow into new markets and geographies.
“We will do it in an orderly manner,” he said. “We are not going out with reckless abandon. As we did with Andrew, we found another great opportunity with Texel.”
The two acquisitions will be grouped into Lydall’s recently renamed technical nonwovens division and together they add about $200 million to the company’s nonwovens sales while providing an entry into several key markets for Lydall.
Nonwovens manufacturers are no strangers to mergers and acquisitions, of course. Avintiv/PGI Nonwovens made a habit of acquisition in its quest to become the world’s largest nonwovens producer (before being acquired itself by Berry Plastics), and many of the world’s largest nonwovens manufacturers—Ahlstrom, Suominen, Fitesa, Glatfelter—have made their way to the top by swallowing up another company.
All of this M&A activity can make the top companies report a challenge each year. Every time one company disappears into the folds of another, a new company needs to be uncovered.
This year we welcome three new companies—Shalag Nonwovens, Saudi German Nonwovens and Daiwabo—to the top companies report. Next year we already know that DuPont will appear as a new company for the first time as DowDuPont, and, of course, the inclusion of Texel’s business will give Lydall a nice boost, but it’s too soon to know how M&A activity will influence next year’s results beyond that.
As always, we appreciate your comments.
Karen McIntyre
Editor
kmcintyre@rodmanmedia.com