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Neenah Expands Product Portfolio with FiberMark Integration

Neenah Paper, Inc.NP , a global manufacturer of technical products and fine papers, has significantly expanded its product portfolio with the rapid integration of FiberMark acquired in August this year. This has simultaneously enriched its customer pool and augmented its revenues.

With annual sales of over $160 million, FiberMark has established itself as a specialty coating and finishing firm with a strong presence in luxury packaging and overlapping technical product categories. These include paper manufacturing, saturating, performance coating, calendering, laminating, embossing and roll converting. The company has been manufacturing saturated papers and nonwovens for specialty applications for over a century.

The combined companies offer high-quality fine paper and packaging in varied colors, textures, finishes and weights in premium papers, box wraps, folding boards and labels. The acquisition has further enabled Neenah Paper to expand its capabilities to specialty coatings and finishing with a focus on custom work.

In addition to an improvised product portfolio, the acquisition of FiberMark is expected to deliver synergies of $6 million per year within the first three years of integration. This is likely to yield accretive non-GAAP earnings of over 40 cents per share.

With such improvisations, Neenah Paper is likely to see healthy growth in the forthcoming quarters. Despite higher pulp prices, the company's manufacturing efficiencies and improved productivity have ensured sustainable margin expansion. While focusing on its core areas of expertise, Neenah Paper is also striving to diversify its product portfolio in order to drive further growth.

Neenah Paper looks well positioned to capitalize on opportunities in growing markets through both organic and inorganic means. With a strong balance sheet, healthy cash flow and effective management, the company appears poised to exploit value-added opportunities to bolster its prospects.

Neenah Paper currently has a Zacks Rank #1 (Strong Buy). Other stocks that look promising in the industry and are worth looking into now include Resolute Forest Products Inc. RFP , Fibria Celulose SA FBR and Orchids Paper Products Company TIS , each carrying a Zacks Rank #2 (Buy).

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NEENAH PAPER (NP): Free Stock Analysis Report

FIBRIA CELULOSE (FBR): Free Stock Analysis Report

RESOLUTE FOREST (RFP): Free Stock Analysis Report

ORCHIDS PAPER (TIS): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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