Lydall’s net sales in the second quarter of 2016 increased 2% to $137.2 million, compared to $134.6 million in the second quarter of 2015. Increased net sales in the Performance Materials, Thermal/Acoustical Fibers (“T/A Fibers”) and Thermal/Acoustical Metals (“T/A Metals”) segments of 15.1%, 13.2% and 9.2%, respectively, were partially offset by a sales decline of 22.5% in the Industrial Filtration segment. From an organic growth perspective, the Performance Materials, T/A Fibers and T/A Metals segments delivered above market growth rates, offset by a decline in the Industrial Filtration segment.

On July 7, 2016, Lydall completed the acquisition of Texel, a Canadian division of ADS, Inc., for $96.3 million, plus $6.9 million for an estimated working capital adjustment and acquired cash. The acquisition was financed with a combination of cash on hand and borrowing from the Company’s amended credit facility. Dale Barnhart, president and CEO, says, “The transaction strengthens Lydall’s position as an industry-leading, global provider of filtration media and engineered materials and expands the Company’s end markets into attractive adjacencies.”

The acquisition is expected to be accretive to Lydall’s earnings, net of the effect of purchase accounting, and accretive to cash flow from operating activities within 12 months. It is estimated that approximately $1 million of additional transaction and integration expenses related to the acquisition will be incurred over the second half of 2016. Beginning with third quarter 2016 reporting, the acquisition will be included in Lydall’s Industrial Filtration operating segment, which will be renamed Technical Nonwovens.