Connect with us

News

Major Paper Suppliers Merge to Form $3 Billion Company

New name for the combined firm not yet announced.

mm

Published

on

Neenah Paper (Alpharetta, GA) and Schweitzer-Mauduit (SWM; Alpharetta, GA) have agreed to merge, bringing together two manufacturers of specialty materials whose combined revenues are expected to be around $3 billion.

The all-stock deal, which was unanimously approved by the boards of directors for both publicly traded companies, calls for Neenah shareholders to receive 1.358 shares of SWM common stock for each share of Neenah stock owned. Upon the close of the transaction, SWM shareholders will own 58% of the combined company, and Neenah shareholders will own 42%.

The companies expect the merger to achieve at least $65 million in annual savings within three years of the deal’s closing, according to a joint release.

Julie Schertell, CEO of Neenah, will serve in the same role for combined company. Dr. Jeff Kramer, CEO of SWM, will serve as a strategic advisor. A new name for the merged entity will be announced at a later date. The deal is expected to close in the second half of 2022, subject to shareholder and regularly approvals.

Both companies are former spinoffs from Kimberly-Clark Corp. (Dallas), the personal care corporation behind the Kleenex, Cottonelle, Scott and Huggies paper-based products. SWM was spun off in the mid-’90s and Neenah became independent in 2004.

In the release, Neenah and SWM said the deal would accelerate their pace of innovation and cited “complementary capabilities” in categories including filtration, healthcare, tape, packaging, release liners and adhesive solutions.

Advertisement

Neenah makes specialty paper, coatings and other materials for digital, packaging and other applications. It had 2,493 full-time employees as of Dec. 31, 2021

SWM makes films, tapes, foams, nets, nonwovens and papers for a variety of industries. It had 5,100 full-timers as of Dec. 31, 2021.

 

Advertisement

SPONSORED VIDEO

Introducing the Sign Industry Podcast

The Sign Industry Podcast is a platform for every sign person out there — from the old-timers who bent neon and hand-lettered boats to those venturing into new technologies — we want to get their stories out for everyone to hear. Come join us and listen to stories, learn tricks or techniques, and get insights of what’s to come. We are the world’s second oldest profession. The folks who started the world’s oldest profession needed a sign.

Promoted Headlines

Most Popular