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$NP entered into a definitive agreement to acquire all the outstanding equity of W.A. Sanders Coldenhove Holding B.V. The purchase price is expected to be approx. $45MM. The transaction is expected to close on Nov.1 and is subject to customary conditions.
$NP remains confident about long term success and returns from investments. The substantial cash flows that its businesses consistently generate allow $NP to fund attractive investments, rise cash returns to shareholders and maintain a strong balance sheet, and remains well positioned to act on future organic and strategic opportunities.
$NP's net sales from Fine Paper & Packaging for 1Q17 rose to $114.3MM from $113.8MM in the prior year. The increase in revenues resulted from higher volumes and increased selling prices that were largely offset by a lower priced mix due to a higher proportion of sales of non-branded products.
$NP's net sales from Technical Products for 1Q17 rose to $121.9MM from $121.5MM in the prior year. This resulted from volume growth led by backings, labels, and transportation filtration, and a higher average selling price due to a higher value sales mix. On a constant currency basis, net sales increased more than 2%.
$NP's operating income for 1Q17 fell to $27MM from $31.4MM last year. This was primarily due to $3.1MM of costs resulting from the U.S. filtration business start-up, about $2MM of higher costs for a week of downtime and other items in Germany, and other unfavorable impacts in Technical Products from input costs and currency.
$NP reported a decline in 1Q17 earnings due to impact from start-up costs for new U.S. filtration operations, short-term headwinds from currency and rising input costs. Net income fell to $17.6MM or $1.03 per share from $19.2MM or $1.11 per share a year ago. Net sales remained unchanged from last year at $242.1MM.
$NP's BoD approved on Nov. 17 a 12% increase in cash dividend on its common stock. The quarterly dividend will increase from $0.33 to $0.37 per share ($1.48 per share on an annual basis), with the first payment at the new rate beginning in 1Q17.
$NP said that at the end of 1Q16, debt was $239MM and debt-to-EBITDA ratio was around 1.5 with over $100MM of borrowing capacity available on existing credit facilities. The company's effective tax rate was 33% vs. 37% reported in 1Q15. The lower rate is largely due to differences in timing of R&D credits recognized all at once in 4Q15.
$NP's Fine Paper & Packaging sales grew 5% & adjusted profit was up 1% in 1Q16. Revenue growth was driven by the acquisition as organic sales were impacted by declines in some price-sensitive business, as well as a slower start in commercial & consumer channels. Technical Products sales grew 15% due to acquired sales & growth in heritage business.
$NP said that it invested in the company to meet the growing global demand for transportation filtration products. This capital efficient project to repurpose on existing fine paper machine and add advanced solved and saturating capabilities remains on track to start up as planned in early 2017.
Innovator in letterpress, colored and textured paper $NP said that its 1Q16 earnings exceeded $1.00 per share with adjusted earnings of $1.15, a first in the history of the company. The results were boosted by the FiberMark acquisition with resulting synergies also reflecting good performance in its heritage businesses.
Pulp and paper products maker $CLW said it appointed John P. O'Donnell and Alexander Toeldte to its BoD, effective immediately. Mr. O'Donnell currently serves as the President, CEO and a director of $NP, while Mr. Toeldte is currently an operating director at private equity firm Paine & Partners, LLC.