27th September 2004
BBA ANNOUNCES €62m ACQUISITION OF TENOTEX
BBA Group PLC today announces that its materials technology division, Fiberweb, has agreed to acquire the Tenotex Group, a privately owned nonwoven materials business, for a debt and cash free consideration of €62 million (£42million).
The deal is consistent with BBA's strategy to increase its presence in the higher value-added sectors of the industrial and consumer care markets. It follows the acquisition last year of Tecnofibra, which, like Tenotex, makes products for the European wipes markets.
The acquisition provides Fiberweb with immediate spunlace capacity for the European consumer care/wipes market, which is the fastest growing segment in the Global nonwoven market. Tenotex has two sites near Bergamo, Italy, and one in Alicante, Spain, employing 250 people.
Turnover in 2003 was €80m on Net Assets of approximately €52m. The acquisition is expected to be earnings enhancing in the first year.
Commenting on the transaction, Roy McGlone, BBA Group PLC Chief Executive, said:
"The Tenotex acquisition further consolidates BBA's position in this fast growing European market and supports our strategy of expanding in the industrial and consumer care nonwoven market.
"It allows Fiberweb to increase its capacity in the spunlace / wipes market immediately and satisfies our stated criteria of acquiring businesses with strong cash flows and high margins."
Enquiries
Roy McGlone, Group Chief Executive, BBA Group PLC, 020 7514 3999
Mike Smith, Brunswick, 020 7404 5959
Emily Kerr
2004 Interims Results Presentation, 2nd September 2004