Germany: Lydall agrees to pay $3.5M in antitrust settlement

Lydall will pay $3.5 million to settle a German antitrust case involving its Lydall Gerhardi subsidiary, a company official said in a filing with the Securities and Exchange Commission.

Lydall has been in negotiations with the German Federal Cartel Office since May 2014 in connection with an investigation into violations of German antitrust laws by European automotive heat shield manufacturers, including Lydall Gerhardi, Chad A. McDaniel, Lydall’s general counsel and chief administrative officer, said in the filing.

Lydall will make one payment of $3.5 million to settle the matter, McDaniel said. The company expects to sign a formal settlement agreement with the German Cartel Office in early 2017, he said.

Lydall will take the charge in the current quarter ending Dec. 31, 2016, and expects to make the payment in the quarter ending March 31, 2017, McDaniel said.

Lydall acquired the German company in December 1998. It produces metal heat shields and acoustical components for automotive manufacturers.

At the time of the acquisition, company officials said the addition of the Gerhardi operation boosted Lydall’s efforts to become a global manufacturer of automotive thermal and acoustical components.

Lydall has posted strong earnings this year, with profits up 16.6 percent in the third quarter and 3.4 percent for the year to date.

Full Content: Journal Inquirer

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.