Monday, July 20, 2015 11:45 am

Neenah Paper, Inc. announced that it has signed a definitive agreement to purchase all of the outstanding equity of ASP FiberMark, LLC from an affiliate of American Securities LLC for $120 million.

"The acquisition adds new capabilities that will further accelerate our strategy to expand in targeted growth areas like premium packaging and performance materials, and complements previously announced strategic investments supporting the continued growth of our filtration business," said John O'Donnell, CEO. "The combination of FiberMark and Neenah increases the size and our reach in many of our addressable markets and provides opportunities to accelerate growth with a wider range of capabilities and products to better serve our customers. From a financial standpoint, the investment represents an attractive use of capital with a mid-teen rate of return, is not dilutive to our EBITDA margins and will be immediately accretive in year one."

FiberMark is a specialty coating and finishing company with a strong presence in luxury packaging and overlapping technical product categories. The company sells globally from six production facilities in the United States and one in the United Kingdom.

Neenah Paper is a leading global specialty materials company, focused on premium niche markets that value performance and image.