Composix Co: Composix Co is a leading company in the rapidly expanding armor market in the United States. Composix produces advanced armor solutions (fiber-reinforced composites and ceramics) for the protection of vehicles (Mine Resistant Ambush Protected Vehicles - MRAP, armored personnel carriers, trucks, tactical vehicles such as HMMWV) aircraft, ships/watercraft and military personnel.
The company has an excellent reputation as a developer of revolutionary concepts and as an engineering partner (prototyping and design of production processes). Partly as a result of this, Composix has become an important partner of the US Government and its associated vehicle manufacturers and contractors.
Composix current annual sales are at a level of approximately US $100 million. The company has shown strong growth in the past few years and this is expected to continue.
Synergy with TenCate: The acquisition of Composix is an important step in the implementation of the strategy to expand further in the largest global armor products market.
The addition of Composix to TenCate Advanced Composites USA's activities would mean a significant acceleration in this growth and would give TenCate a major USA based market position in the growing hard armor market for military vehicles.
The combination of the two companies' knowledge, purchasing power and market positions will present a major opportunity to achieve strong synergistic effects.
The acquisition fits into TenCate's strategic business model and it creates a leading position in the market for anti-ballistic light weight composite materials.
Through this acquisition TenCate will be able to supply this fast growing market more successfully. This important strategic step increases the relevant importance of composites within TenCate's portfolio.
Other information and completion of the transaction: This acquisition will be financed through the current credit facilities of TenCate.
The transaction is expected to be completed before the end of January 2008. No further financial details will be provided about either Composix or the acquisition as such. TenCate is represented in the transaction by ABN-AMRO Bank and Wachovia Securities is serving as financial advisor to Composix Co.
marketing@alchempro.com
