Minneapolis netting maker Conwed Plastics will be sold to Schweitzer-Mauduit International for $295 million in cash.
The deal has the ability to increase in size by another $40 million in five years, depending on select performance parameters, and is expected to close in January, company officials announced this week.
Conwed, a subsidiary of New York-based holding company Leucadia National Corp., was founded in 1966 in Minneapolis. It has additional operations in Roanoke, Va., Athens, Ga., Chicago and Belgium.
Conwed manufactures the ubiquitous extruded-plastic netting used to wrap Christmas trees, hay bales and turf, and to bag fruit, plants and produce.
Its flexible and strong netting also is widely used as fencing by construction firms and as a key manufacturing component in air and liquid filters, carpet pads, medical supplies and hygiene products.
“Conwed has been a solid Leucadia business for over 30 years,” said Leucadia CEO Rich Handler.
“However, Schweitzer-Mauduit approached us as a compelling buyer and we agreed.
“We look forward to watching Conwed’s outstanding CEO, Chris Hatzenbuhler, help propel Conwed to even greater heights under its new partnership with Schweitzer-Mauduit.”
Conwed finished 2015 with an estimated $140 million in annual sales.
Schweitzer-Mauduit, based in Georgia, makes and sells a range of engineered resin-based rolled goods, including films, nets, foams and cigarette papers.