Shares of Lydall (LDL) blasted higher Monday after the maker of filtration materials said it agreed to a $62.10-a-share cash bid from Unifrax, a specialty-materials company backed by Clearlake Capital.
Lydall, Manchester, Conn., has a market capitalization of $1.09 billion, according to Yahoo Finance. The companies pegged the enterprise value of the deal at $1.3 billion.
Clearlake is the Santa Monica, Calif., private-equity firm. Unifrax, Tonawanda, N.Y., provides specialty materials used in heat management, specialty filtration, battery materials, emission control and fire protection.
Lydall's shares recently traded at $60.50, up 82%. In 2021 through the close of Friday's trading, the stock had been up 11%.
With 23 manufacturing facilities worldwide, Lydall is "well positioned to capitalize on growth in clean air filtration and electric vehicle adoption, among many other attractive markets,” the companies said.
“The combination of Unifrax and Lydall creates a global specialty materials platform with technologies in advanced filtration, electric vehicle battery systems, and energy saving applications, John Dandolph, chief executive of Unifrax, said in a statement.
The transaction, approved by the boards of Lydall and Unifrax, is expected to close in the second half, subject to conditions including regulatory clearances and a vote of Lydall holders.
In other merger news, Sykes Enterprises (SYKE) said Friday that fellow customer experience company Sitel Group is taking it private in a $2.2 billion cash deal. The companies expect combined revenue of more than $4 billion this year.
Also last week, the Justice Department filed an antitrust lawsuit challenging Aon's (AON) proposed acquisition of Willis Towers Watson (WLTW) .
The regulators contend that the deal to create the world’s largest insurance brokerage is anticompetitive. They say the tie-up would lead to higher prices and reduced innovation.