Lydall Inc., a Manchester-based manufacturer of specialty engineered products and materials, recently announced that it will acquire MGF Gutsche GmbH & Co. KG for approximately $58 million.

Gutsche is a leading producer of nonwoven needle punch materials serving the industrial filtration and high performance nonwoven segments, with operations in Germany and China.

The transaction, subject to approval, is expected to close by the end of the year. The acquisition will be integrated into Lydall’s Technical Nonwovens segment. The company plans to maintain its manufacturing presence in the U.K., Europe and China. The transaction is expected to be financed through a combination of cash and loans from the company’s revolving credit facility.

“The acquisition of Gutsche is very appealing as it combines two complementary companies in the industrial filtration and technical materials markets. With the addition of Gutsche, we gain an experienced management team and an attractive footprint to serve Europe as well as secure a strong filtration position in the fast growing waste-to-energy incineration market,” Dale G. Barnhart, Lydall’s president and CEO, said in a statement. “In addition, we are able to complement our China-based sales with a focus on the greater Asia-Pacific export markets. Gutsche is a well-known leading brand in the industry with an excellent reputation for high quality products and a proven culture of innovation. We look forward to welcoming their employees to the Lydall family.”