Mativ confirms receipt of offer from Evergreen Hill to acquire its EP business

Mativ announced that it has received a binding offer from Evergreen Hill Enterprise to acquire Mativ’s Engineered Papers business, or EP, part of Mativ’s Fiber Based Solutions reporting segment, for $620M. Subject to customary closing date adjustments, Mativ expects to receive net proceeds of approximately $575M in the proposed transaction, which would be primarily used for debt paydown. The proposed transaction will also be subject to customary closing conditions, including regulatory approvals and satisfaction of the consultation process with the applicable works councils in France, and is expected to close in the fourth quarter of 2023 Evergreen Hill Enterprise is based in Singapore and is part of a Indonesian-based privately held group of diversified companies serving a wide variety of industries. The potential buyer is expected to fund the proposed transaction with existing cash balance and is not dependent on capital markets for financing. The gross sale price of $620M reflects approximate 6.5x multiple on EP’s trailing 12-month adjusted EBITDA; trailing 12-month sales for EP were approximately $530M. Expected net transaction proceeds of approximately $575M will be used primarily to reduce debt; net proceeds represent approximately 35% of outstanding net debt. Engineered Papers financial results will be reported as assets held for sale beginning in Q3. The company believes its total post-transaction near-term sales would be approximately $2.2B with an adjusted EBITDA margin of approximately 13%.