Financial terms of the purchase were not disclosed, but Neenah did advise in a press release that the brands' combined annual sales approximate $20 million. The company further noted that the brands of paper it is purchasing are retailed at major customers, including Staples (NASDAQ:SPLS), Office Depot (NASDAQ:ODP), Office Max (NYSE:OMX), and Walmart (NYSE:WMT).
Neenah's Fine Paper division, into which these products will be incorporated, is the smaller of the company's two divisions, but by far the more profitable. In fiscal 2011, the most recent period for which complete data is available, the division earned 14.4% pre-tax margins on $275 million in revenues.
Neenah Paper shares closed at $30.94 Thursday, up 2.8%, ahead of the news.
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