EnPro Industries’ Acquisition of LeanTeq

Wells Fargo Securities and Gibson Dunn & Crutcher, LLP served as advisors to EnPro. GCA Advisors and Skadden, Arps, Slate, Meagher & Flom LLP served as advisors to LeanTeq.

EnPro Industries, Inc. is a manufacturer of highly engineered industrial products.

LeanTeq Co. is a privately-held, Taiwan-based company that primarily provides refurbishment services for critical components and assemblies used in state-of-the-art semiconductor equipment.

Upon completion of the acquisition, LeanTeq will be part of EnPro’s Technetics Group within the Sealing Products segment. Technetics Group designs and produces custom, highly engineered components for demanding applications in the semiconductor, aerospace and nuclear markets.

EnPro is financing the transaction through a combination of funds from cash, a revolving credit facility, a new term loan facility, and rollover equity from LeanTeq executives. Pro forma Net Debt to Adjusted EBITDA is expected to be approximately 2.7x at the closing of the LeanTeq transaction. EnPro’s cash generation capacity is expected to provide sufficient funds for reducing net debt to within our stated long-term target range of 1.5x to 2.0x by the end of 2020.

The Palo Alto-based Skadden team includes Corporate partner Michael Mies (Picture) and associates Christopher Hammond and Alice Thai, Intellectual Property partner John (Jay) Neukom, counsels James Pak and Ken Kumayama and associate Vincent Ying, and Tax partner Nathan Giesselman and associate Katy Cummings.

Involved fees earner: Katy Cummings – Skadden Arps Slate Meager & Flom; Nathan Giesselman – Skadden Arps Slate Meager & Flom; Christopher Hammond – Skadden Arps Slate Meager & Flom; Ken Kumayama – Skadden Arps Slate Meager & Flom; Michael Mies – Skadden Arps Slate Meager & Flom; John Neukom – Skadden Arps Slate Meager & Flom; James Pak – Skadden Arps Slate Meager & Flom; Alice Thai – Skadden Arps Slate Meager & Flom; Vincent Ying – Skadden Arps Slate Meager & Flom;

Law Firms: Skadden Arps Slate Meager & Flom;

Clients: LeanTeq Co. Ltd;

Author: Ambrogio Visconti