SWM and Neenah merge into a new US$3 billion global leader in specialty materials.
Schweitzer-Mauduit International, Inc. (SWM) and Neenah, Inc., two leading global manufacturers of specialty materials, entered into a definitive agreement to combine in an all-stock merger of equals with combined revenues of approximately US$3 billion, expanded scale and capabilities, and accelerated growth opportunities.
This transaction brings together two organizations with highly complementary technologies, geographies, and product portfolios in specialty materials. The combined company will capitalize on powerful megatrends with strong positions in large, growing categories including filtration, healthcare & wellness, protective & adhesive solutions, industrial solutions, and packaging & specialty paper.
Under the terms of the agreement, which was unanimously approved by the boards of directors of both companies, shareholders of Neenah will receive 1.358 shares of SWM common stock for each share of Neenah common stock owned. Following the closing of the transaction, SWM shareholders will own approximately 58% of the combined company, and Neenah shareholders will own approximately 42% of the combined company, in each case, on a fully diluted basis
The transaction is expected to achieve at least $65 million in annual run-rate cost synergies within 24-36 months post close. Key cost savings include organizational optimization, procurement and other supply chain efficiencies, and redundant public company costs.
The combined company will remain headquartered in Alpharetta, Georgia and will be led by a proven management team that reflects the strengths and capabilities of both organizations. Upon close, Julie Schertell, president and c.e.o. of Neenah, will serve as president and c.e.o. of the combined company. Dr. Jeff Kramer, c.e.o. of SWM, will serve as a strategic advisor for the combined company following the close of the transaction. A new name for the combined company will be selected in connection with the merger.
The new board will consist of nine directors, five of whom will be from the SWM board and four of whom will be from the Neenah board, including Julie Schertell. John D. Rogers, non-executive chairman of the SWM board, will serve as non-executive chair of the combined company’s board of directors.