Tag: Neenah Paper

Mativ Holdings Reports Results

Photo: SWM
Mativ Holdings reported sales of $660.1 million in the fourth quarter of 2022, up 69 percent over those reported in the comparable 2021 quarter, reflecting 6 percent constant currency organic sales growth and the benefit of the merger between Neenah and Schweitzer-Mauduit International that created the holding. GAAP Income was $2.5 million and GAAP operating profit was $26.9 million, which all included significant expenses related to the Neenah merger integration.
For the full year 2022, sales increased 51 percent to $2.17 billion, reflecting 11 percent constant currency organic sales growth and the benefit of the merger. GAAP loss was $6.6 million and GAAP operating profit was $51.4 million, which all included significant expenses related to the Neenah merger closing and integration.
“2022 was a historic year for Mativ, bringing together two strong companies to leverage our combined technologies and products to drive value for all of our stakeholders,” said Mativ Holdings CEO Julie Schertell in a statement. “We closed out the year with strong year-over-year fourth-quarter growth for the combined company from continued positive price/cost performance, and we enter 2023 with clear momentum on integration and synergy execution.
“Despite macro uncertainties, our conviction in the opportunities ahead for Mativ is unwavering. We have significant controllable actions to enable strong performance as we enter 2023, specifically cost synergies, innovation and programs focused on commercial and operational excellence, as well as broader, longer term decisions and actions to capitalize on our increased scale.”
February 27, 2023
Mativ Reports Second-Quarter Results

Photo: SWM
Mativ Holdings, the company that was recently created out of the merger between Schweitzer-Mauduit International (SWM) and Neenah, reported earnings results for the three months ending June 30, 2022.
Including SWM legacy results, sales increased 13 percent to $426.4 million. Organically, sales grew 11 percent with strong demand and pricing actions across the business, driving top-line gains and offsetting cost increases.
“With the completion of our merger in early July to form Mativ and the close of a strong second quarter for the legacy SWM and Neenah businesses, we are poised to carry our momentum into the rest of 2022 as a unified and more scaled global leader in specialty materials,” said Mativ Holdings CEO Julie Schertell in a statement.
The company’s Engineered Papers segment sales were up 10 percent, to $138.3 million, driven by volume growth and price increases. Volumes benefited from broad-based gains across the portfolio, highlighted by continued rapid growth in heat-not-burn reduced-risk products.
GAAP operating profit was $22.4 million, down 7 percent. Adjusted operating profit was $21.5 million, down 19 percent. While contractual and market price increases and negotiated volume gains more than offset higher pulp and other material costs, operating profit and margin percentage reductions resulted mainly from rapidly escalating energy costs, particularly in Europe.
Mativ Holdings expects semi-annual contractual price increases, additional market price increase and surcharges to mitigate the impacts of escalating pulp and energy costs during the second half of the year.
August 11, 2022
SWM and Neenah Complete Merger
Mativ Holdings today announced the completion of the merger of equals between Schweitzer-Mauduit International (SWM) and Neenah, two leading global manufacturers of specialty materials, effective July 6, 2022.
Mativ has approximately $3 billion in sales, supporting customers in more than 100 countries, and manufacturing capabilities on four continents. Beginning Wednesday, July 6, 2022, the company will commence trading on the New York Stock Exchange, under the new ticker symbol MATV.
“I am extremely excited and proud to mark this important milestone in the journey of our two companies with the formation of Mativ, said Julie Schertell, president and CEO of Mativ, in a statement.
“This merger is a unique opportunity to boldly reimagine our future as a stronger and faster-growing global enterprise. As we come together, we see significant near and long-term value creation opportunities to accelerate growth and amplify margins. With compelling strategic touch-points in key market categories, complementary geographies and technologies, increased global scale, and a passionate workforce with deep roots in material science, we are ideally suited to help solve our customer’s most critical challenges, which is the foundation of our cultural, commercial and financial success.
“As we bring the best of these two organizations together, our priorities are centered around supporting our customers, accelerating our growth, delivering the $65 million, or more, of deal-enabled cost synergies, and driving margins and cash flows to support deleveraging and a strong dividend. We will also continue to execute our strategy, including investments in our fastest growing and most profitable business units and decisive actions to optimize our portfolio over time. Mativ has tremendous potential, and, as we celebrate this new beginning, I want to recognize the efforts of our outstanding employees who work tirelessly every day to push the limits of what is possible.”

This merger is a unique opportunity to boldly reimagine our future as a stronger and faster-growing global enterprise.
Julie Schertell, president and CEO, Mativ
“Today marks an exciting new chapter in the rich histories of both companies, forming a scaled global leader in specialty materials to drive value for customers, employees, stakeholders, and our shareholders,” said John Rogers, chairman of Mativ’s board of directors. “We will continue executing a well-defined strategy, maintain an attractive financial profile, and advance our corporate stewardship and governance efforts. Mativ is committed to providing attractive returns to shareholders while maintaining a prudent balance sheet and disciplined approach to capital allocation. We have assembled an exceptional, diverse, and experienced leadership team, and we look forward to working with Julie and her talented group of leaders to deliver on the promise of this transaction.”
Mativ will disclose financial results for two reporting segments: advanced technical materials (ATM) and fiber-based solutions (FBS). The ATM segment is comprised of five non-reporting business units: filtration, protective solutions, release liners, healthcare, and industrials. This segment generally represents the combination of SWM’s legacy advanced materials and structures and Neenah’s technical products reporting segments. ATM will deliver solutions that filter and purify air and liquids, support adhesive and protective applications, advance healing and wellness, and solve some of material science’s most demanding performance needs.
The FBS segment is comprised of two non-reporting business units: engineered papers and packaging and specialty paper—and represents SWM and Neenah’s respective legacy paper segments. FBS will leverage the combined company’s extensive natural fiber capabilities to provide specialty solutions for various end-uses, including sustainable packaging, imaging and communications, home and office, and consumer goods, among other applications.
For the second quarter of 2022, Mativ will report financial results for legacy SWM and select financial and business highlights from Neenah.
July 6, 2022
SWM and Neenah Paper Agree to Merge

Photo: Mikael Damkier
Neenah Paper and Schweitzer-Mauduit International (SWM) have agreed to merge, creating a specialty materials company with a combined $3 billion in sales. The new company does not have a name yet.
The combined company would be headquartered in Alpharetta, Georgia, USA. Neenah President and CEO Julie Schertell will lead the new company while SWM CEO Jeff Kramer will take a role as a strategic advisor. Five SWM board members and four Neenah board members will make up the combined company’s board of directors.
The two companies expect to trim at least $65 million from their operating costs over the next two to three years. It will do so through production synergies and “highly complementary technologies, geographies and product portfolios in specialty materials,” the companies said in a news release. The new company would have strong market share in growing categories like healthcare and wellness, protective and adhesive solutions, industrial solutions, packaging paper and specialty paper.
“This merger is an exciting next step on our journey and one that will deliver significant shareholder value,” said Kramer. “The combination with Neenah is a continuation of our strategic intent to solve our customers’ most complex design challenges. We are excited by the numerous benefits of this merger, including the significantly broadened customer base, product lines and technical expertise.”
“This combination is a unique opportunity to accelerate our growth strategy and continue the transformation of our business, creating a global leader in specialty materials with strong and defensible positions in attractive end markets,” said Schertell. “Merging our two companies enhances our ability to grow and solve the needs of our customers for demanding, innovative products that address global challenges, such as the necessity for clean water and air, sustainable alternatives, and enhanced health and wellness.”
The deal has been approved by both companies’ boards but still must be approved by shareholders for both companies and regulators.
Neenah was founded in 1873. It was acquired by Kimberly-Clark in 1902 and operated until Kimberly-Clark spun off its regular paper-making operations under the Neenah name in 2004. Schweitzer-Mauduit is also a former division of Kimberly-Clark that was spun off as an independent company in 2015.
March 29, 2022