New York, June 05, 2014 -- On June 5, 2014, Neenah Paper, Inc. announced that it signed a definitive agreement to purchase all of the outstanding equity of Crane Technical Materials, Inc. (CTM) from Crane & Co., Inc. for $72 million, which we expect to be financed with cash on hand. CTM has two manufacturing operations in Pittsfield, Massachusetts and provides performance-oriented wet laid nonwovens media for fast growing filtration end markets as well as environmental, energy and industrial uses. We expect the acquired business to generate roughly $50 million in sales, with EBITDA margin in mid-teens. Neenah ratings are not immediately affected by the transaction. Even though we expect the business to be immediately accretive to earnings and cash flow generation, the resultant improvement in leverage metrics will not be significant in the near-term, while the cash outlay will temporarily erode Neenah's liquidity position. For more details, please see our issuer comment dated June 5, 2014 on moodys.com.

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