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.
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.