Unifrax, a global provider of high-performance specialty materials focused on thermal management, specialty filtration, battery materials, emission control and fire protection applications backed by Clearlake Capital Group, signed definitive agreements to acquire Lydall, a designer and producer of specialty filtration materials and advanced material solutions.
A syndicate of banks led by J.P. Morgan provided committed debt financing to support Unifrax’s acquisition of Lydall. Unifrax currently intends to retain its existing first lien credit facilities, refinance its second lien facility and raise approximately $1.2 billion of new secured and unsecured financings in the debt capital markets. The transaction will be supported by more than $400 million of additional new cash and equity from investors including Clearlake.
Lydall is well positioned to capitalize on growth in clean air filtration and electric vehicle adoption, among many other attractive markets. Under the terms of the agreement, Lydall shareholders will receive $62.10 per share in cash for each share outstanding, implying a total enterprise value of approximately $1.3 billion.
