Lydall bids $265M for Pa. firm

BY Gregory Seay

Manchester manufacturer Lydall Inc. is buying a Pennsylvania maker of on- and off-road automotive seals, gaskets and sound-deadening materials for $265 million cash.

Lydall said Thursday it will complete its buyout of closely held Interface Performance Materials Inc., of Lancaster, Pa., sometime in this third quarter, assuming customary regulatory reviews and approvals.

Lydall intends to fully fold Integrated into its Performance Materials Group within a year of closing the deal.

Founded in 1995 as Interface Solutions Inc., the company in 2017 netted $26 million on $146 million in sales, with sales projected to hit at least $150 million in 2018.

Lydall CEO Dale G. Barnhart said Integrated will add scale and more favorable margins to its product lines as the company seeks long term to shrink its exposure to the automotive industry.

Barnhart claims that by leveraging Lydall's excess production capacity and other resources that it can shave $4 million a year off Integrated's operating overhead by 2020.