Mativ Announces Completion of Sale of Engineered Papers Business
Dec. 1, 2023 – Mativ announced today that it has completed the sale of its Engineered Papers business to Evergreen Hill Enterprise, Pte. Ltd.
Evergreen Hill Enterprise is based in Singapore and is part of a successful, Indonesian-based privately held group of diversified companies serving a wide variety of industries.
The deal was first announced on Aug. 1, and at that time Mativ’s CEO, Julie Schertell, explained, “While a solid business, EP’s concentration in the tobacco industry is not aligned with Mativ’s long-term ambition and presents a more attractive value proposition under new strategic ownership.”
Commenting on today’s sale, Schertell said, “We are very pleased with the completion of the sale of Engineered Papers. They have a great team and strategy in place for a successful future. For Mativ, this is an important part of unlocking our strategy to become a leading manufacturer of specialty materials. As we head into 2024, over 80% of our revenue will be from our Advanced Technical Materials segment, where we have strong positions in large, growing, profitable markets.”
The net impact of the transaction on Mativ’s debt is expected to be a reduction of more than $600 million, which equates to approximately 35% of Mativ’s outstanding debt balance as of the end of the third quarter, and is subject to customary post-closing adjustments. This debt reduction is expected to be effective early December 2023.
“This transaction fully aligns with our commitment to continued debt reduction and operational focus in attractive markets that accelerate our growth and expand our margins,” stated Schertell. “It marks a key milestone in the transformation of Mativ and aligns with our strategy to focus our efforts, accelerate growth, and drive value for our shareholders.”
Mativ Holdings, Inc. (NYSE: MATV) is a global leader in specialty materials headquartered in Alpharetta, Georgia. The company’s two operating segments, Advanced Technical Materials and Fiber-Based Solutions, target premium applications across diversified and growing end-markets, from filtration to healthcare to sustainable packaging and more.
SOURCE: Mativ Holdings, Inc.