Mativ will use engineered papers divestment to pay down debt

Chicago, Aug. 1 – Mativ Holdings, Inc. announced it intends to use approximately $575 million of proceeds from the sale of its engineered papers business to reduce debt, according to a press release.

Evergreen Hill Enterprise, Pte. Ltd. made a binding offer to buy the business for $620 million.

The net proceeds represent around 35% of the company’s outstanding net debt.

As a result of debt reduction upon close, a rebalanced capital allocation strategy, and expected core EBITDA growth, the company believes it will be within its targeted credit agreement net leverage range of 2.5x to 3.5x by the end of 2024, Mativ noted in the press release.

The transaction is expected to close in the fourth quarter.

Evergreen is expected to fund the transaction from an existing cash balance.

Morgan Stanley & Co. LLC served as financial adviser and King & Spalding LLP served as legal adviser to Mativ.

Mativ was formerly Schweitzer-Mauduit International, Inc. The company is an Alpharetta, Ga.-based manufacturer of specialty materials.

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