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Lydall To Buy Interface Performance Materials For $265 Mln Cash

Lydall, Inc. (LDL), a provider of specialty engineered products for the thermal/acoustical and filtration/separation markets, announced late Thursday that it has entered into an agreement to acquire Interface Performance Materials for $265 million in cash.

The acquisition is expected to be accretive to Lydall's earnings, net of the effects of purchase accounting approximately six months after closing.

The transaction is expected to close in the third quarter of 2018, subject to the completion of specified closing conditions.

The company expects the transaction to further advance its engineered materials offering in new markets with similar technologies utilized in Performance Materials business.

Pennsylvania -based Interface is a provider of gasket and specialty materials. Interface's reported sales and adjusted EBITDA for the fiscal year 2017 were $142 million and $26 million, respectively. The business is expected to achieve sales of approximately $150 million and adjusted EBITDA of about $29 million in the trailing 12 months ending August 31, 2018.

Lydall expects to leverage its business efficiencies, operating discipline and economies of scale to generate an estimated annual cost savings of approximately $4 million by 2020.

The transaction is expected to be financed predominantly from borrowings under the Company's amended credit facility; the provisions of which are being finalized with its banking partners.

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