AirBoss provides updated outlook following announcement of Ace Elastomer acquisition

Newmarket, Ontario, Canada – AirBoss of America Corp. today (August 19) announced an update to its previously disclosed outlook for full-year 2021, as disclosed on May 12, and as recently reiterated on August 10. All dollar ($) amounts are in U.S. dollars.

The acquisition of Ace Elastomer, Inc., which was announced by the company earlier today, is expected to have a positive but nominal impact on the company’s outlook for 2021, given the expected timing for closing of this transaction. Accordingly, the company’s 2021 outlook remains as follows: Revenues in the range of $630 to $710 million, reflecting growth of approximately 25 percent to 41 percent over 2020; adjusted EBITDA margin in the range of 15.0 percent to 15.5 percent ; adjusted earnings per diluted share of $1.80 to $2.19, reflecting growth of approximately 24 percent to 51 percent over 2020.

For periods following fiscal year 2021, the acquisition of Ace is expected to increase AirBoss Rubber Solutions’ (ARS) sales by approximately 15 percent, gross profit by approximately 28 percent and EBITDA by approximately 26 percent over the current year.

As announced, the acquisition of Ace is expected to increase ARS’ proprietary color and specialty rubber compounding capacity, complementing investments made by AirBoss in color and specialty compounding with the addition of two new dedicated lines in Kitchener, Ontario, in 2019; significantly accelerate ARS’ strategy to expand from traditional black, high volume product lines into lower volume but typically higher margin color and specialty markets; expand ARS’ reach into the U.S. south and midwest; provide minimal overlap in the customer base, presenting opportunities for revenue synergies; and establish a market leading position for ARS in the rubber roll market.

As previously stated, the company’s guidance is based on its current outlook, but excludes the potential for new personal protective equipment (PPE) and health-care related awards and any other significant new contracts or significant mergers and acquisitions.