Albany International acquires paper machine clothing supplier Heimbach Group
Albany International Corp. (NYSE:AIN), a leader in industrial technology solutions, has officially announced the completion of its acquisition of Heimbach Group for €132 million in cash and an assumed net debt of approximately €22 million. The deal was initially declared in June 2023 and is poised to make Albany a dominant force in the industry by leveraging Heimbach’s innovative technologies and extensive geographic reach.
Headquartered in Düren, Germany, Heimbach is a global frontrunner in the supply of paper machine clothing as well as high-tech textile products. The company caters to diverse sectors such as food processing, chemicals, construction materials, and the automotive industry. With around 1,200 employees and nine production facilities spread across Germany, China, Spain, Switzerland, the United Kingdom, Belgium, and Italy, Heimbach reported an annual revenue of €161 million in 2022.
Daniel Halftermeyer, President of Machine Clothing at Albany, shared his optimism: “This acquisition provides a monumental opportunity for value creation through increased scale, complementary technologies, and a broader geographic footprint. We aim to integrate the best of both companies to redefine customer value as the industry’s go-to partner.”
The acquisition brings multiple strategic and financial benefits to Albany, which includes Heimbach’s robust presence in central European markets pairs well with the former’s strong northern European operations. It also adds significant production capacity in Asia, furthering Albany’s global reach.
The technological capabilities of Heimbach in paper machine clothing will significantly contribute to Albany’s differentiation and customer-specific solutions.
Albany has identified several supply chain, logistics, and operational opportunities that are expected to result in significant margin expansion for Heimbach’s business operations. The transaction is anticipated to be accretive to Albany’s earnings per share and cash flow beginning in year two.
Founded in 1811, Heimbach Group’s core competency lies in the development, production, and sales of forming fabrics, press felts, and dryer fabrics for paper machines, as well as technical textiles. The company has a strong tradition of providing comprehensive customer services, on-site consultation, and cutting-edge products.
With this acquisition, Albany International cements its role as an industry leader, capitalizing on the unique strengths and capabilities of both companies to offer unparalleled value to customers globally.