SWM plans to restore lower range of debt level following Tekra, Trient acquisition

By Rebecca Melvin

New York, Feb. 18 – SWM plans to restore its debt level to the lower end of its range within two years of its Tekra LLC and Trient LLC acquisition, according to a company news release.

The company has signed a definitive agreement to purchase the companies for about $155 million in cash.

The transaction’s $155 million purchase price is expected to be funded with the company's existing credit facility. The deal is expected to close before March 31. At close, pro forma net debt to EBITDA per the terms of the credit facility is expected to be 2.7x and is expected to return toward the low 2x range over the next two years, absent further transactions, according to the release.

The transaction is expected to be accretive to 2020 adjusted EPS.

Atlanta-based SWM is a performance materials company, engineering papers, films, nets and nonwovens for filtration, transportation and infrastructure applications among others.

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