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Luxfer to acquire Neo Performance Materials for $612M; Luxfer slides ~6%

Published 12/18/2018, 09:53 AM
© Reuters.  Luxfer to acquire Neo Performance Materials for $612M; Luxfer slides ~6%
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  • Luxfer Holdings (LXFR -5.8%) agrees to acquire Neo Performance Materials (OTCPK:NOPMF) in a cash & stock transaction valued at $612M
  • As per the agreement, each Neo Performance Materials share will receive $5.98 in cash and 0.395 Luxfer shares; post transaction, Luxfer will own ~63% of the combined company
  • Luxfer has arranged $375M syndicated term loan to fund the cash portion of the deal; expects to realize cost synergies of $15M
  • Neo has generates sales of $454M and adj. EBITDA of $69M.
  • The combined entity is expected to have sales of $947M and adj. EBITDA of $148M, with net leverage of ~2.0x.
  • Now read: 3M (NYSE:MMM): Should Investors Worry About Rising Debt Levels?


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