Albany International Corp AIN has agreed to acquire the privately held Heimbach Group for ~€153 million in all cash, including the assumption of €21 million net debt.
Headquartered in Düren, Germany, Heimbach is a global supplier of paper machine clothing for the production of all grades of paper and cardboard on all machine types.
Heimbach has about 1,200 employees and nine production facilities across Germany, China, Spain, Switzerland, the United Kingdom, Belgium, and Italy. It recorded FY22 annual revenue of approximately €161 million.
“With Heimbach, we gain increased scale and complementary technology, while broadening our geographic footprint to efficiently serve markets in Europe and Asia. This transaction also provides an opportunity to leverage Albany’s expertise to drive meaningful margin expansion in Heimbach’s operations and cash flows that can be reinvested in high-growth areas of the Company,” commented Bill Higgins, President and CEO of Albany.
Albany International’s cash and cash equivalents were $304.26 million as of March 31, 2023.
Heimbach brings additional production capacity to Asia, enhancing Albany’s ability to serve clients throughout the region.
The acquisition is expected to be accretive to Albany’s earnings per share and cash flow beginning in year two. The transaction is expected to close in the second half of 2023.
Price Action: AIN shares are trading higher by 0.99% at $92.11 on the last check Wednesday.
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