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.”
For further details see:
Mativ will sell engineered papers business for $620M to Evergreen Hill Enterprise