US-based paper manufacturer Neenah has signed a definitive agreement to acquire Spanish packaging firm Industrias de Transformacion de Andoain’s (ITASA) parent company, Global Release Liners, for a cash consideration of €205m ($247m).

Neenah will acquire the company from Magnum Capital and other minority shareholders.

ITASA is a coater and converter of release liners used in hygiene, tapes, industrial, labels, composites and other markets. The company operates in Spain, Mexico and Malaysia.

Neenah CEO Julie Schertell said: “The acquisition of ITASA, with its advanced coating capabilities and strong market reputation for technical expertise, new product development and premium performance, provides us with an opportunity to meaningfully accelerate our presence in speciality coatings.

“The release liner market is a large, growing market and ITASA gives us a strong foundation to build on while complementing our organic initiatives with overlapping paths to markets and customers.

“With a double-digit rate of return, earnings accretion and up to $4m per year of synergies, this acquisition is an attractive use of capital and allows us to maintain our strong balance sheet and financial position.”

Neenah will fund the acquisition by raising its existing Term Loan B from $200m to an expected $450m.

The transaction is expected to be closed next month, subject to customary closing conditions.

As coronavirus impacted sales of $120m last year, Neenah expects sales of nearly $140m this year and ‘consistent, pre-synergy mid-teen’ EBITDA margins.

Perella Weinberg Partners has been appointed as Neenah’s exclusive financial adviser while JPMorgan Chase Bank is leading the company’s financing efforts.