Coronavirus
Technology Solutions
Pall Helping
Hospitality
Industry Reopen
With Safe Water
3M Taking Steps
to End This
Pandemic and
Prevent Another
One
Unifrax Acquiring Lydall
Lydall Revenues Up 13% in First Quarter
India Facing
Third Wave Due
to New Variant
India Vaccination Program Slowing
Missouri Hit
With Highly
Contagious
Variant
Milwaukee Transit System to Use Aeris Guard
____________________________________________________________________________
Pall Helping
Hospitality
Industry Reopen
With Safe Water
Steve Ebersohl, Vice President of Global Marketing at Pall, said:
"The hospitality
industry was
significantly
impacted by the
COVID-19
pandemic – many
venues closed
entirely or ran
at much lower
capacity these
past 12 months.
When water
remains stagnant
in a dormant
building, the
risk of
waterborne
infections
increases.
"Well before the
COVID-19
pandemic, Pall
helped customers
reduce the
microbial
contamination
within the
in-premise water
system through
the use of
effective
filtration
systems. We have
the expertise
and are well
positioned to
respond to the
global challenge
that the
hospitality
industry faces
today. "
Pall also
predicts a
demand increase
for Point-of-Use
water filters
for the
consumption and
preparation of
cold drinks,
food and
personal hygiene
procedures.
These filters
can provide an
immediate and
efficient
physical barrier
against
waterborne
bacteria and
fungi, treating
water at the
point of
distribution and
preventing the
risk of
contamination
by Legionella and
other waterborne
pathogens such
as Pseudomonas
aeruginosa,
non-tuberculous
mycobacteria, Escherichia
coli and Aspergillus
fumigatus.
Pandemic Action
Network is a
coalition of
more than 100
global
multi-sector
organizations
that are driving
collective
action to bring
an end to
COVID-19 and to
ensure the world
is prepared for
the next
pandemic. 3M and
Pandemic Action
Network will
work together on
programming to
support
vulnerable
communities that
continue to bear
the brunt of
COVID-19.
"With the mass
roll-out of
vaccines and the
U.S. CDC's
recent guidance
on masking, many
people are
understandably
hopeful that the
worst is behind
us — but the
COVID-19
pandemic is not
over and now is
not the time to
let our guard
down. So far in
2021, there have
been more cases
and deaths
reported
compared to the
whole of 2020.
We must act on
lessons learned
and continue to
promote and
inspire healthy
behaviors while
ensuring the
world is better
prepared for
pandemic
threats," said
Gabrielle
Fitzgerald, CEO
of Panorama
Global and
co-founder of
Pandemic Action
Network.
"Through our
partnership with
3M, we will
mobilize public
support and
catalyze
action until the
world has fully
crushed this
pandemic."
3M recognized
the challenge of
COVID-19 early
on and has
increased
production of
N95 respirators
and other
supplies needed
to fight the
pandemic. Recently,
3M looked back
on lessons
learned from the
pandemic and
released a whitepaper on
best practices
and policies to
prepare for
future
pandemics. 3M
has also
partnered with
humanitarian aid
organizations
that are
providing
critical
supplies and
assistance
throughout the
world
The U.S.
District Court
for the Eastern
District of
Kentucky granted
3M a temporary
restraining
order stopping
defendant Old
World Timber,
LLC from selling
counterfeit
products. 3M
then worked with
the U.S.
Marshals Service
to seize more
than one million
respirators.
"3M will
continue to take
action against
those who sell
fake products
and put lives at
risk during the
pandemic, and we
appreciate the
prompt action by
the U.S.
Marshals Service
and the court to
help protect
unsuspecting
customers," said
Kevin Rhodes, 3M
senior vice
president and
deputy general
counsel. "We
will continue to
offer our
resources to
check suspicious
offers and get
counterfeit
products off the
market."
The case
originated when
potential
customers
contacted 3M's
fraud hotlines
(1-800-426-8688
in the U.S.
or www.3m.com/covidfraud)
to check the
authenticity of
sales documents
from Old World
Timber. 3M
investigated and
determined the
documents and
products were
fake.
Since the
pandemic began,
3M has seized
more than 41
million
counterfeit N95
respirators in
collaboration
with law
enforcement and
customs agencies
around the
world.
3M has
established hotlines
around the world to
report suspected
fraud and has
created online
resources to
help spot
price-gouging,
identify
authentic 3M
respirators and
ensure products
are from 3M
authorized
distributors.
3M has
investigated
more than 14,000
fraud reports to
its hotlines
globally and has
filed 36
lawsuits to stop
those attempting
to profiteer
from the
pandemic demand
for critical
supplies.
Online, 3M has
removed more
than 20,000
false or
deceptive social
media posts,
over 21,000
fraudulent
e-commerce
offers and at
least 315
deceptive domain
names have been
taken down.
3M is donating
all of the
monetary damages
and settlement
payments it
receives in
these cases to
COVID-19 related
charities.
3M has created
resources to get
the facts about
authentic PPE
and avoid
counterfeit
scams
at www.3m.com/covidfraud.
If you have any
questions
whether
respirators
you've purchased
or are thinking
about purchasing
are authentic,
3M is here to
help.
3M recognized
the challenge of
COVID-19 and
responded early
and rapidly to
provide critical
supplies needed
to fight the
pandemic. 3M
increased
production of
N95 and other
respirators
critical for
doctors, nurses
and first
responders,
quadrupling the
U.S. and global
production rate.
3M is helping to
protect lives
through
innovative
products and
technologies
across a wide
range of
industries and
helping prepare
the world for
next global
challenge.
Unifrax, a leading global provider of high-performance specialty materials focused on thermal management, specialty filtration, battery materials, emission control and fire protection applications backed by Clearlake Capital Group, L.P. announced it has signed definitive agreements to acquire Lydall, Inc. a leader in the design and production of specialty filtration materials and advanced material solutions. With its leading technologies and 23 manufacturing facilities around the world, Lydall is well positioned to capitalize on growth in clean air filtration and electric vehicle adoption, among many other attractive markets. Under the terms of the agreement, Lydall shareholders will receive $62.10 per share in cash for each share outstanding, implying a total enterprise value of approximately $1.3 billion.
“The combination
of Unifrax and
Lydall creates a
global specialty
materials
platform with
new cutting edge
technologies in
advanced
filtration,
electric vehicle
battery systems,
and energy
saving
applications,”
said John
Dandolph,
President and
CEO of Unifrax.
“The addition of
Lydall’s people,
technologies,
and assets to
the Unifrax
portfolio will
help accelerate
our innovation
pipeline and
creates a world
class platform
capable of
solving the
world’s most
pressing energy
consumption,
environmental
and filtration
challenges. We
are excited to
partner with a
company that is
similarly
focused on our
commitment to a
Greener,
Cleaner, and
Safer® world.”
Sara Greenstein,
President and
CEO of Lydall,
added, “We are
excited about
the combination
of Lydall and
Unifrax. With
this
transaction, we
are creating a
leader in
specialty
filtration and
advanced
materials with
over 250 years
of combined
expertise and
experience
delivering
innovative and
compelling
solutions to
customers
worldwide.”
“We have long
admired Lydall
and what it
would bring to
our platform
investment in
Unifrax and
could not be
more excited
about partnering
with the Company
and its team to
build one of the
world’s leading
global specialty
materials
platforms,” said
José E.
Feliciano,
Co-Founder and
Managing Partner
at Clearlake,
and Colin
Leonard, Partner
at Clearlake, in
a joint
statement. “We
have supported
Unifrax’s
development of
new technologies
over the last
few years that
have the
potential to
change how we
think about the
industries in
which both
Unifrax and
Lydall operate
and inform their
futures. The
addition of
Lydall to the
Unifrax
portfolio and
its strong
capabilities in
advanced
filtration
creates a global
platform with
significant
scale that
together can
accelerate each
company’s
respective
compelling
growth plans.”
Morgan Stanley &
Co. LLC acted as
lead financial
advisor, J.P.
Morgan acted as
financial
advisor, and
Kirkland & Ellis
acted as legal
counsel to
Unifrax in the
transaction.
BofA Securities
is acting as
exclusive
financial
advisor, and
Davis Polk &
Wardwell LLP is
acting as legal
counsel to
Lydall in
connection with
the transaction.
·
Net sales of
$227.1 million,
up 13.3%
compared to
prior year on
strong demand
across all three
segments: up
10.8%
organically
·
Gross margin and
adjusted gross
margin of 21.4%,
up 220 bps
·
Net income of
$5.1 million or
$0.28 per
diluted share
compared to loss
per share of
($3.25) in
Q1-2020;
Adjusted
earnings per
diluted share of
$0.35 compared
to adjusted
earnings per
diluted share of
$0.20
·
EBITDA of $22.7
million or 10.0%
of sales;
Adjusted EBITDA
up 22.0% to
$24.4 million,
or 10.7% of
sales
·
Total debt net
of cash of
$172.3 million,
compared to
$200.3 million
at March 31,
2020; net debt
leverage ratio
of 2.4x
“I’m thrilled to
report that
Lydall delivered
another very
strong quarter
led by sales
growth and
sequential
margin expansion
in every
business
segment. We
continue to
execute on our
strategic
roadmap and
leverage our
strong product
portfolio to
deliver
measurable
results as we
help our
customers win,”
said Sara A.
Greenstein,
President and
Chief Executive
Officer.
“Specialty
filtration sales
rose sharply as
our new fine
fiber meltblown
production line
in Rochester,
New Hampshire
began producing
media at full
capacity early
in the quarter.
This was
complemented by
strong demand
for sealing
solutions and
specialty
insulation
products in our
Performance
Materials (“PM”)
business,”
commented Ms.
Greenstein. PM
specialty
filtration sales
grew 32.7% or
$8.5 million,
and sales of
sealing and
advanced
solutions
products were up
14.4%.
“Incremental
fine fiber
meltblown
capacity at
Rochester and
St. Rivalain,
France remains
on schedule for
full production
rates in early
third quarter,
which we expect
to contribute to
strong growth
and further
margin expansion
for PM."
Elevated
automotive
demand continued
globally, with
parts sales in
the Thermal
Acoustical
Solutions
(“TAS”) segment
growing 11.9%
compared to last
year, and 4.3%
compared to the
fourth quarter
of 2020. “The
TAS business
eliminated
COVID-related
high cost
temporary labor
in our North
American
operations and
continues to
deliver
sequential
margin
improvements.”
Lydall’s
Technical
Nonwovens
(“TNW”) segment
saw sales growth
of 7.4%, led by
strong growth in
Canada and
China. Favorable
mix and
productivity
drove EBITDA
margin expansion
both year over
year and
sequentially.
Q1 2021
Consolidated
Results
Net sales of
$227.1 million
increased by
$26.6 million,
or 13.3%
compared to the
first quarter of
2020.
Consolidated
sales were up
10.8%
organically, led
by 19.9% growth
in PM on strong
specialty
filtration and
sealing volumes,
healthy growth
of 8.1% in TAS
on robust
automotive
demand, and
growth of 1.8%
in the TNW
segment.
Operating income
of $12.1 million
improved by
$67.7 million
dollars from the
first quarter
2020 operating
loss of $55.6
million dollars,
which included
impairment
charges of $61.1
million.
Consolidated
adjusted EBITDA
of $24.4 million
was up $4.4
million or 22.0%
from the first
quarter of 2020.
Adjusted EBITDA
margin of 10.7%
expanded 70
basis points
from prior year
and 230 basis
points from
fourth quarter
2020. This was
led by strong
margin gains in
PM which
delivered
adjusted EBITDA
margin of 26.5%,
up sharply from
prior year
driven by
favorable mix of
specialty
filtration
products and
higher volume of
sealing sales.
Continued
operational
improvements in
North America
were the primary
driver of
sequential
EBITDA margin
expansion of 290
basis points in
TAS, while TNW
volume and mix
led to
sequential
EBITDA margin
expansion of 170
basis points.
Randall B.
Gonzales, Chief
Financial
Officer,
commented, “PM
continues to
perform in line
with our
expectations
fueled by
strong,
profitable
growth of
specialty
filtration
volumes, and
effectively
leveraging fixed
costs as sealing
and specialty
insulation
volumes
accelerate.
Lydall’s focus
on reshaping our
portfolio to
meet our
customer’s
diverse needs,
combined with a
commitment to
operational
excellence, are
key components
to delivering
healthy margin
expansion and
strong cash
flows.”
Ms. Greenstein
commented, “Our
strategy is
delivering
results. As we
focus on the
Grow and
Differentiate
phase, we see
continued robust
demand in 2021
across all of
the key end
markets that
leverage
Lydall’s diverse
product
portfolio. In
addition, our
strong
innovation
pipeline
addresses the
megatrends
driving the
post-pandemic
global economic
rebound.
Specialty
filtration
solutions that
address enhanced
indoor air
quality
requirements
will accelerate
with the
completion of
Lydall’s
innovation
focused
Filtration
Center of
Excellence.
Stricter
industrial
emission
regulations will
drive continued
demand for
higher
performance
outdoor air
quality
solutions.
Demand for high
performance
sealing
solutions across
a myriad of end
use applications
and ultra-low
temperature
insulation for
cryogenic
applications
remain robust.
Recent
announcements
related to
domestic
infrastructure
investment are
expected to
benefit our
geosynthetics
business, while
accelerated EV
adoption
leverages
Lydall’s deep
OEM customer
partnerships and
engineering
expertise in
vehicle
light-weighting,
thermal
management, and
acoustical
abatement
products.
“Our focus on
One Lydall
initiatives and
bias for quick,
decisive, and
data driven
actions have
enabled Lydall
to deliver
strong first
quarter results
even in light of
the pandemic and
significant
global supply
chain
disruptions.”
Ms. Greenstein
concluded, “We
are confident
that these
hard-won gains
on operational
excellence, cost
flexibility,
cash discipline,
and relentless
customer focus
will continue
going forward,
positioning
Lydall to
deliver superior
results in
2021.”
Congress leader
Rahul Gandhi on
Tuesday said
that the Covid
death numbers
could be five to
six times higher
in India, but
the focus should
be on
vaccination, as
the second wave
was bad, the
third wave could
be worse.
Rahul Gandhi,
during his
virtual press
conference, was
responding to a
question on data
being fudged on
Covid deaths.
Rahul Gandhi
said, "It is
sure and there
is no doubt that
the government
is hiding the
truth. In my
view, the number
of death is five
to six times of
the reported
figure, but it
is not
productive for
us to get into
discussion of
number of deaths
as to how many
people died. Of
course, the
compensation is
critical and
there are ways
in which figures
can be verified
but the
discussion
should not be on
the numbers, but
it should be on
what we should
do next."
"We can attack
the government
after the
pandemic is over
-- that you lied
on the numbers
but today is the
time and again I
am repeating
myself, if you
think the second
wave was bad,
then the third
wave is going to
be worse. So
focus should be
on vaccination
and we should
ensure that
virus should not
be given space
to regenerate,"
he added.
The Congress
leader said that
the only way out
is to vaccinate
100 per cent of
the population
and the focus
should be on it,
while saying
that it's good
that more than
80 lakh people
took vaccines on
Monday, but this
should be an
ongoing process.
He said that the
government
should allow as
many vaccines as
possible and
refused to join
issues on
efficacy and
time period and
stated that it
should be left
to the experts.
Earlier, Rahul
Gandhi on
Tuesday,
released a white
paper of the
party on the
Covid pandemic
and said that
the aim of the
report is not to
finger point at
the government
but to help the
nation prepare
for the third
wave.
The Congress
leader said that
the entire
country knows
that before the
second wave, the
scientists and
doctors warned
us. "Government
did not take the
necessary action
to prevent the
second wave of
Covid," he said,
adding that
today again we
are standing
here.
"Entire country
knows that the
third wave is
going to come as
the virus is
mutating. And we
are saying again
that the
government
should prepare
immediately, the
requirements of
medicines,
infrastructures,
oxygen supplies
and hospitals,"
he said.
"The purpose of
this white paper
is to help the
government to
prepare for the
third wave,"
Rahul Gandhi
said.
He said that
this is our
intention to
provide the
government the
insights on what
to be done. He
also pointed out
that it is clear
that management
of the first and
second wave of
Covid was
disastrous, and
we have tried to
point out the
reasons behind
it. He asserted,
"I would even go
so far as to say
that there might
be waves even
after the third
wave of Covid-19
as the virus is
mutating".
He also said
that the central
pillar of
fighting Covid
is vaccination.
Stressing on
providing
financial
assistance to
the people, the
Congress leader
urged the
government to
implement the
NYAY scheme and
come up with
Covid fund to
provide monetary
support to
people who lost
their kin due to
the pandemic.
The 8.6 million
doses injected
on Monday
represented a
record two-fold
jump as India
kicked off free
inoculation for
all adults,
reversing a
policy for
individual
states and
hospitals to buy
vaccines for
those aged 18 to
44.
"This is clearly
not
sustainable,"
Chandrakant
Lahariya, an
expert in public
policy and
health systems,
told Reuters.
The inoculation
effort in the
world's second
most populous
nation had
covered just
about 5.5% of
all the 950
million people
eligible, even
though India is
the world's
largest producer
of vaccines.
Since May, India
has distributed
an average of
fewer than 3
million doses
each day, far
less than the 10
million health
officials say is
crucial to
protect the
millions
vulnerable to
new surges.
Particularly in
the countryside,
where two-thirds
of a population
of 1.4 billion
lives and the
healthcare
system is often
overstretched,
the drive has
faltered,
experts say.
Maintaining the
pace of the
vaccination
effort will
prove
particularly
challenging when
it comes to
injecting the
younger
population in
such
"underserved"
areas,
Delhi-based
epidemiologist
Rajib Dasgupta
said.
Widespread
vaccine
shortages since
May have
worsened the
divide between
urban and rural
areas, as many
younger people
in cities turned
to private
hospitals,
paying between
$9 and $24 a
dose in the rush
to protect
themselves from
the virus.
Such regional
gaps in
healthcare are
exacerbated
unless
comprehensive
data is made
available on
vaccinations,
among others
factors, said
Bhramar
Mukherjee, a
professor of
epidemiology at
the University
of Michigan.
Authorities in
New Delhi said
more than 8
million
residents had
yet to receive a
first dose and
added that
inoculating all
the adults in
the capital
would take more
than a year, at
the current
pace.
The strain, known as the delta variant, first detected
in India, has
been found in
the wastewater
of at least 10
counties,
according to an
NBC review of
data in the
state’s “Sewershed
Surveillance
Project.”
"Since about the second week of May, we've seen a very
large increase
in the
prevalence of
the delta
variant," said
Marc Johnson, a
professor of
molecular
microbiology and
immunology at
the University
of Missouri.
"And the speed
at which it
spread is quite
amazing. It
spread really
quickly through
the state."
Johnson and his colleague Chung-Ho Lin, a research
associate
professor and
lead scientist
in the
university’s
bioremediation
program, have
worked with the
Missouri
Department of
Health and
Senior Services
and the
Department of
Natural
Resources to
track the
coronavirus
through
wastewater, with
the
collaboration
beginning last
summer.
Johnson’s lab focuses on separating the virus from
larger particles
of waste and
extracting its
genetic
material.
Researchers can
amplify the
genetic material
and study it in
greater detail,
through a
process known as
quantitative
reverse
transcription
polymerase chain
reaction.
It’s a time-consuming endeavor, but
one that experts
say can be a
highly effective
mitigation tool.
In addition to
detecting the
presence of the
virus that
causes Covid-19
in human waste,
researchers are
able to identify
specific
variants.
"It’s just a
much more
comprehensive
way of studying
the spread of
the virus,"
Johnson
explained. “When
you rely on
human testing,
you're relying
on people that
got tested, have
access to health
care, and
whatnot. Our
system will tell
you about an
entire city
without any bias
for anything. As
long as you use
the sewer
system, we will
detect it."
Each week, the
Department of
Health and
Senior Services
sends the teams
at the
university from four
to 50 boxes of wastewater
samples from
treatment
facilities
across the
state.
Researchers
first detected
the delta
variant on May
10, in
wastewater from
Branson. That
same week, they
found it in
wastewater
collected some
235 miles away,
in Brookfield.
"We're not
talking about
one continuous
city. This is
lots of small
individual
communities,"
Johnson said.
"It's concerning
that it’s
spreading so
rapidly."
In Linn County,
home of
Brookfield, less
than a third of
residents are
fully
vaccinated. Linn
County’s health
administrator,
Krista Neblock,
told NBC News
the vaccination
rate and the
presence of the
delta variant
are
disconcerting.
"If you would
have asked me at
the beginning of
May if I would
have thought at
the end of May
we would be in
the situation
that we were in,
I would have
said no," she
said. "In
November, when
we weren’t
dealing with
that variant
being in our
community, we
had maybe one or
two members of a
household
testing
positive. But
now we have seen
whole households
test positive
and doing the
same mitigation
and isolation
guidelines that
we have been
promoting
through the
whole pandemic."
Neblock said the
delta variant
appears to be
spreading much
faster than
previous
variants. The
Centers for
Disease Control
and Prevention
said last week
that the variant
is a "variant of
concern." That
status applies
to a variant
when there is
reason to
believe it is
more
transmissible or
causes more
severe cases or
vaccines and
treatments are
less effective
against it.
Neblock said the
county’s current
wave of Covid-19
cases has led to
a
hospitalization
rate of about 14
percent, and
those being
hospitalized are
younger, 20 to
60 years old,
and largely
unvaccinated.
"I definitely
hope that this
surge has opened
our community's
eyes a little
bit about the
importance of
the vaccine,"
Neblock said
The Milwaukee
County Transit
System
(MCTS) announced
it is
implementing a
new air
filtration
system to help
prevent the
airborne spread
of viruses –
including
COVID-19 – and
make public
buses safer.
MCTS is using
the Aeris Guard
Bioactive Filter
Treatment, a
first-of-its-kind
spray that coats
each
bus’s regular
HVAC filters
with a special
polymer that
controls the
host bacteria
and pathogens,
including those
which harbors
SARS-CoV-2. A
single
application
helps control
and capture
bacteria for up
to three months,
keeping public
transportation
riders safe for
longer periods
of time.
"We're excited
to partner
with Milwaukee
County on this
first deployment
of the Aeris
COVID defense
system on an
American public
transit system,"
said Aeris
CEO, Peter
Bush. "Milwaukeeans
can ride with
peace of mind
knowing they now
receive the same
protection from
COVID-19 that
other parts of
the world have
on a daily basis
after adopting
this
technology."
Many public
transit
officials are
facing obstacles
when looking to
improve indoor
ventilation, as
most existing
solutions are
expensive, not
scientifically
proven, or
incompatible
with existing
HVAC
systems. The
Aeris Guard
Bioactive Filter
Treatment,
developed by
Aeris
Environmental,
is affordable
and increases
filtration
efficacy without
decreasing
airflow or
placing extra
strain on
vehicle
ventilation
systems.
"Throughout the
pandemic, MCTS
has worked to
ensure that
buses continue
to safely serve
county
residents,"
said Milwaukee
County
Executive David
Crowley. "The
introduction of
this innovative
air filtration
treatment system
is just the
latest tool
we're using to
keep our
employees and
riders safe."
Mass transit
remains the most
accessible and
affordable
option for many
Americans
getting to and
from workplaces,
hospitals,
schools, grocery
stores, etc. For
the 28 million
Americans who
don't have
access to cars,
public transit
is the only
option. The CDC
advises reducing
indoor airborne
transmission of
the virus by
improving
ventilation and
upgrading HVAC
filtration, but
buses, trains,
and subway cars
rely on heating
and cooling
systems which
recirculate the
air and can
spread virus
particles.
Restoring trust
among the public
in America's
public transit
options through
proper virus
mitigation is
critical to
fully reopening
our economy.
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