Polyfelt acquisition gives Royal Cate global geosynthetics leadership
13 Oct '05
3 min read
Polyfelt is complementary to Ten Cate Nicolon as regards its product portfolio, geographic market and technological basis. Polyfelt has modern production facilities. In March 2005, a patented process was put into operation by Polyfelt for the production of high-performance geotextiles.
Ten Cate Nicolon's market position in Europe is restricted mainly to woven materials with high strength properties for demanding applications. Ten Cate Nicolon occupies a leading position in the US, with a wide product range and application-oriented support in the area of technical processing.
Thanks to the takeover, a geotextiles group will be created with a leading position on the world market. The combination has a full scope of products, a very extensive distribution network and good access to the important contracts market.
This takeover represents an important strategic step in the 'buy-and-build' process, around the five strategic core areas: protective fabrics, aerospace composites, antiballistic composite materials, artificial grass and geosynthetics.
The acquisition price amounts to €70 million (shares plus takeover of debt position). No goodwill is involved in this takeover. The takeover will be financed from existing credit facilities. Since the takeover is expected to be completed by the end of this year, the effect on profit for the whole of 2005 will be minimal. From 2006 onwards, however, Polyfelt will contribute to the profit and a gradual increase in synergy benefits is expected.
The RTC roots of the corporation go back to the end of the seventeenth century; already then textile activities were carried out by members of the Ten Cate family. In 1691 several Ten Cates were co-signatories of a request to the Provincial Council of Overijssel (The Netherlands) relating to an increase in import duties by England.
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