MATV - Mativ will sell engineered papers business for $620M to Evergreen Hill Enterprise

2023-08-01 07:50:40 ET

• Evergreen Hill Enterprise will acquire Mativ’s ( NYSE: MATV ) Engineered Papers business, part of Mativ’s Fiber Based Solutions reporting segment, for $620M.
• Mativ expects to receive net proceeds of ~$575M in the proposed transaction, which would be primarily used for debt paydown.
• The proposed transaction is expected to close in Q4 2023.
• The proposed sale price reflects an approximate 6.5x multiple on Engineered Papers’ trailing 12-month Adjusted EBITDA.
• “The sale process has also given us the opportunity to rebalance our capital allocation approach, with the top near-term priority being debt reduction. In addition to paying down debt from the sale proceeds, we are also right-sizing our dividend to align with our reshaped portfolio, support continued near-term de-leveraging, and position the Company for future growth investments. In addition, our board has approved a $30 million share repurchase program, providing added flexibility in our cash returns to shareholders. We believe our stock represents an attractive value and expect to opportunistically execute share repurchases going forward.”

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