A leading producer of resin-based netting solutions with proprietary manufacturing processes and innovative technologies for markets including hygiene, construction, filtration and highway infrastructure development, Conwed's annual sales are approximately $140 million.
Frederic Villoutreix, chairman and CEO of SWM, comments, "We are pleased to announce the acquisition of Conwed, which adds complementary operations and products to fuel the expansion of our Advanced Materials and Structures growth platform. While Conwed is a solid standalone enterprise which we expect to deliver sustainable 3-4% sales growth, strong manufacturing synergies are likely to drive accelerated profit growth within our AMS segment over the next several years. By the end of year two, we expect run-rate synergies of approximately $10 million as Conwed's low-cost netting operations should create opportunities to optimize our manufacturing footprint."
In 2013, SWM announced it was acquiring DelStar Technologies, a manufacturer of films, meltblown nonwovens, netting and composites for markets including filtration, healthcare, automotives and textiles.
"With Conwed's assets and technologies, which are similar to DelStar's, SWM will become the clear global leader in resin-based netting with best-in-class operations and products, and strong positions in several attractive niche applications," Villoutreix says. "In addition to filtration applications, where we currently have a strong presence, Conwed's netting provides critical functionality in erosion and sediment control for highway infrastructure and oil and gas site development, as well as carpet and turf backings used in residential construction."
The Conwed acquisition represents SWM's fifth diversification transaction since 2013 and puts its AMS segment's annualized sales well over $400 million, demonstrating a patient and disciplined approach to building scale in this growth platform. The AMS segment continues to evolve as a portfolio of complementary businesses with proprietary technologies and leading positions in key product areas, which we believe will deliver GDP-plus sales growth and operating margin expansion into the high-teens.