Schweitzer-Mauduit International (SWM, Financial), a product engineering and manufacturing company thatdevelops paper, film, netting and nonwovens for a wide range products and applications, announced the completion of a major acquisition (Scapa Group Plc) during the quarter along with a disappointing earnings report that included various one-time charges. Over the last several years, the company has diversified away from its historical focus on reconstituted papers, and created a broader product offering of specialized materials. The Scapa acquisition is the latest step in that process and we think it is a great strategic fit purchased at a reasonable price.
From Steven Scruggs (Trades, Portfolio)' FPA Queens Road Small Cap Value Fund second-quarter 2021 commentary.
