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Lydall Agrees to $62.10-Share, $1.1B, Bid by PE-Backed Unifrax

Lydall jumped after the maker of filtration materials said it agreed to a $62.10-a-share cash bid from Unifrax, which is backed by PE firm Clearlake Capital.
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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.

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“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.