Subsequent Events

6 Months Ended

Jun. 30, 2016

Subsequent Events [Abstract]

Subsequent Events

Subsequent Events

On July 7, 2016, the Company completed an acquisition of the nonwoven and coating materials businesses primarily operating under the Texel brand from ADS, Inc., a Canadian-based corporation, pursuant to the terms of a Share Purchase Agreement (the “Purchase Agreement”) for $96.3 million. In addition, the Company paid $6.9 million in cash for an estimated working capital adjustment and acquired cash. The acquisition was financed with a combination of cash on hand of $18.2 million and $85.0 million of borrowings through the Company’s Amended $175.0 million Credit Facility. The final purchase price is subject to certain customary post-closing adjustments. The Texel operations are principally based in the province of Quebec, Canada and primarily serves a North American customer base in the manufacture of nonwoven needle punch materials predominantly serving the geosynthetic, liquid filtration, and other industrial segments. Beginning with 2016 third quarter reporting, the acquisition will be included in Lydall’s Industrial Filtration operating segment which will be renamed Technical Nonwovens.

On July 7, 2016, the Company amended its $100.0 million senior secured revolving credit facility to increase the available borrowing to $175.0 million. The Amended Credit Facility is secured by substantially all of the assets of the Company and has a maturity date of July 7, 2021. The Company entered into this Amended Credit Facility to provide additional capacity to support organic growth programs, fund capital investments and continue pursuits of attractive acquisitions intended to drive profitable growth. For additional information regarding the Amended Credit Facility, please refer to Note 5 in the Consolidated Financial Statements included in this Quarterly Report on Form 10-Q.