Andrew Industries sells filtration division for £50m

ANDREW Industries, family-owned Lancashire manufacturing group founded in the late 19th Century, has sold six of its businesses to a US company for around £50m ($80m)

Based in Altham near Accrington, Andrew is selling the businesses from its filtration division to Lydall Inc, a US listed business.

The deal involves subsidiaries operating in the UK, USA and China, employing around 450 people in total and generating revenues of £76m ($127m).  The products are sold under the brands Andrew Webron in Europe, Southern Felt in the US and China Felt Company in China.

Andrew filter products are typically used in air filtration, especially pollution control, and a wide range of industries including power generation, cement, steel, asphalt, waste to energy, food and pharmaceutical.  

Lydall Inc is a New York Stock Exchange listed company, headquartered in Manchester, Connecticut.  The transaction strengthens Lydall’s position as a global provider of filtration and engineered material products.  

Andrew Industries Limited, founded in 1896, is privately owned by the Andrew family and will continue to operate its engineering and laundry divisions.  

Following the sale of the filtration division, ongoing revenue will be approximately £66m.

The company is led by Chairman Ted Andrew who is the third generation of the original founders of the business. His senior management team include managing director Ian Kenyon and finance director Ian Lord.

Ted Andrew commented “I could not be more pleased to have Andrew’s filtration business become a part of the Lydall family.  I know Lydall, like Andrew Industries, prides itself on upholding the highest standards of commercial and technical integrity, innovation and quality so the businesses fit extremely well together.  I wish Lydall and all the employees working within the Filtration Division every success.”

Lydall said that in the 12 months to December 2013, Andrew Filtration’s unaudited revenue was approximately $127m and EBITDA was approximately $14m.

Dale Barnhart, Lydall’s president and chief executive said: “The acquisition of Andrew Filtration expands our global footprint, adds complementary and new technologies, as well as substantial scale that provides a platform for long-term growth, and better positions us to deliver meaningful shareholder value.” 

Andrew Industries was advised by Grant Thornton in Manchester, which provide corporate finance advice with a team led by Ali Sharifi, Edwin Chia and Joe Pollard.

Mr Sharifi said:”There is plenty of US interest in dynamic North West businesses and the transaction yet again reflects the value that can be achieved by going global.”

Jonathan Watkins and Louise Barber at the Manchester office of law firm DLA Piper provided legal advice to Andrew Industries.  

Andrew Industries was founded in Bury by Edward Worsley Andrew in 1896 selling woven textiles to laundries.