LDL Stock Price Increased 85.4%: Why It Happened

By Amit Chowdhry ● June 22, 2021
  • The stock price of Lydall, Inc. (NYSE: LDL) increased 85.4% yesterday. This is why it happened.

The stock price of Lydall, Inc. (NYSE: LDL) increased 85.4% yesterday, going from a previous close of $33.29 to $61.72. Investors were responding to Unifrax (a leading global provider of high-performance specialty materials focused on thermal management, specialty filtration, battery materials, emission control and fire protection applications backed by Clearlake Capital Group) announced it signed definitive agreements to buy Lydall (a leader in the design and production of specialty filtration materials and advanced material solutions). 

Through its leading technologies and 23 manufacturing facilities around the world, Lydall is well-positioned to capitalize on growth in clean air filtration and electric vehicle adoption among many other attractive markets. And under the terms of the deal, Lydall shareholders will receive $62.10 per share in cash for each share outstanding — implying a total enterprise value of approximately $1.3 billion.

The deal — which has been approved by the boards of directors of both companies — is expected to close in the second half of 2021 subject to the receipt of required regulatory approvals, approvals of Lydall stockholders, and other customary closing conditions.

KEY QUOTES:

“The combination of Unifrax and Lydall creates a global specialty materials platform with new cutting edge technologies in advanced filtration, electric vehicle battery systems, and energy saving applications. The addition of Lydall’s people, technologies, and assets to the Unifrax portfolio will help accelerate our innovation pipeline and creates a world class platform capable of solving the world’s most pressing energy consumption, environmental and filtration challenges. We are excited to partner with a company that is similarly focused on our commitment to a Greener, Cleaner, and Safer world.”

— John Dandolph, President and CEO of Unifrax

“We are excited about the combination of Lydall and Unifrax. With this transaction, we are creating a leader in specialty filtration and advanced materials with over 250 years of combined expertise and experience delivering innovative and compelling solutions to customers worldwide.”

— Sara Greenstein, President and CEO of Lydall

“We have long admired Lydall and what it would bring to our platform investment in Unifrax, and could not be more excited about partnering with the Company and its team to build one of the world’s leading global specialty materials platforms. We have supported Unifrax’s development of new technologies over the last few years that have the potential to change how we think about the industries in which both Unifrax and Lydall operate and inform their futures. The addition of Lydall to the Unifrax portfolio and its strong capabilities in advanced filtration creates a global platform with significant scale that together can accelerate each company’s respective compelling growth plans.”

— José E. Feliciano, Co-Founder and Managing Partner at Clearlake, and Colin Leonard, Partner at Clearlake, in a joint statement 

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.