Lydall, Inc. (LDL) stock is entered into the acquisition agreement with Clearlake Capital-backed Unifrax today on June 21, 2021, after which the LDL stock price soared by 84.68% to reach $61.48 a share at the time of this writing. Lydall, Inc, founded in 1879, is operating via performance materials, Technical Nonwovens, and Thermal Acoustical Solutions segments. Let’s take a closer look at recent scenarios of LDL stock.

Acquisition Agreement:

According to Lydall’s acquisition agreement with Unifrax, the latter will acquire the former at $62.10 per share price of the LDL’s outstanding share which represents a total enterprise value of roughly $1.3 billion. The transaction is expected to close in the second half of the year 2021 upon the required regulatory approvals.  LDL stock is now in a good position to grow in clean air filtration and electric vehicle adoption as it is operating with advanced technologies with 23 manufacturing facilities around the globe.

President and Chief Executive Officer of LDL stock, Sara Greenstein showed excitement towards the combination of Lydall with Unifrax and said that this transaction would create the leader in specialty filtration and advanced materials. The CEO further said that 250 years of combined experience would result in delivering innovative solutions to customers around the globe.

First Quarter 2021 Financial Results:

Lydall stock on April 28, 2021, announced the first quarter 2021 financial results according to which

• Net sales of LDL stock increased by 13.3% as compared to the prior year’s same period to reach $227.1 million.
• Operating income for the reported quarter significantly improved by $67.7 million to reach $12.1 million as compared to a $55.6 million operating loss in the first quarter of 2020.
• Adjusted EBITDA of LDL stock was reported $24.4 million, $4.4 million or 22% higher than the same period of the previous year.
• $172.3 million total debt was reported by the end of the first quarter of 2021 as compared to $200.3 million as of March 31, 2020.
• Lydall stock had cash and short-term investments of $88.72 million by the end of March 2021 as compared to $102.18 million by the end of December 2020.

Conclusion:

The LDL stock was soaring today following the acquisition agreement with Unifrax. Strong results in the first quarter of 2021 reflect the strong growth of the LDL stock over the year and now in a good position to grow more in the future. Hence LDL stock can be a good bet for investors in the long run.