Chase Corporation – CCF – Acquired 100% of the capital stock of NEPTCO, Inc

Chase Corporation (NYSE: CCF) announced that it has acquired 100% of the capital stock of NEPTCO, Inc. (NEPTCO), a private company whose core products are sold primarily into the broadband communications and electronics packaging industries. The purchase price on a debt free, cash free basis was $67.0 million, excluding any working capital adjustments and acquisition related costs. As part of this transaction, CCF is also acquiring NEPTCO’s 50% ownership stake in a joint venture. NEPTCO revenues were $69.5 million in their most recently completed year ended December 31, 2011 excluding $25.8 million attributable to the joint venture. NEPTCO’s adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) was $11.3 million for the same fiscal period.

The acquisition was funded through term debt bank financing led and arranged by Bank of America, with participation from RBS Citizens. The applicable interest rate is based on the effective London Interbank Offered Rate (LIBOR) plus a range of 1.75% to 2.25%, depending on the consolidated leverage ratio of CCF. As part of the financing for this acquisition, the Company also obtained a new revolving line of credit totaling $15 million which will allow for increased flexibility for working capital requirements going forward.

Peter R. Chase, Chairman and Chief Executive Officer commented: “The combination of Chase and NEPTCO´s Wire & Cable materials businesses, based in North America, offers the broadest array of proven products to our predominately Americas-based customers. This merger creates a solid value proposition by bringing together over 120 years of combined service to the industry. In addition, there are some exciting synergies in other markets served by both entities. We are confident that our joining together will both enhance today´s customer experience and provide greater resources to deliver tomorrow´s solutions.”

Guy Marini, President of NEPTCO commented: “Our organization is excited to become part of the Chase team. We look forward to providing our customers with best in industry service, quality, and product.”

NEPTCO is a market leading provider of engineered materials used in the production of copper cable and electronic packaging products, utilizing core competencies of coating, laminating, slitting and winding. NEPTCO has strong brand recognition and is known for innovation and customer service. Its Muletape® product line is the established industry standard for pulling and detecting tapes. The acquisition of NEPTCO will complement Chase Corporation’s existing product lines.

Headquartered in Pawtucket, RI, NEPTCO operates three manufacturing facilities in the United States and one in China. The Company also utilizes distribution facilities in Rotterdam, Netherlands and Mississauga, Ontario to assist in supply chain management within each respective region.

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Post Written By: Ed Liston Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.