Lydall, Inc. announced that it has acquired Texel, a division of ADS, Inc., for approximately $96 million in cash. The transaction strengthens Lydalls position as an industry-leading, global provider of filtration and engineered materials and expands the Companys end markets into attractive adjacencies. Texel is a leading producer of non-woven needle punch materials serving the geosynthetic, liquid filtration, and other industrial segments. The acquired business consists of three manufacturing operations and one distribution center located within the province of Quebec, Canada and has approximately 300 employees.
For Texels fiscal year ended January 31, 2016, revenue was approximately $72 million and adjusted EBITDA was approximately $12 million. The business is expected to be fully integrated by 2018, and Lydall expects to leverage its operating discipline, business efficiencies, and economies of scale to generate estimated annual cost savings of approximately $2 million. These savings are not contingent upon anticipated revenue growth of approximately 5 percent per annum.
The acquisition was financed through a combination of cash on hand and $85 million of borrowings from the Companys amended revolving credit facility, which was increased to $175 million. The amended facility provides additional capacity to support organic growth programs, fund capital investments and continue pursuits of attractive acquisitions that will drive profitable growth.