Lydall said Wednesday that it has entered into an agreement to acquire MGF Gutsche GmbH & Co. KG for approximately $58 million in cash.
Gutsche produces non-woven needle punch materials with operations in Germany and China. The business is expected to generate 2016 revenues of $50 million.
The company expects the acquisition to be fully integrated by the end of 2019, and expects to generate annual cost savings of approximately $3 million.
The acquisition is expected to be dilutive to the company’s 2017 earnings, and expected to be accretive by mid-2018. Shares were 1.7% higher in recent morning trade.