Private Equity Comes Calling for Tencate

One of the world’s biggest manufacturers of geosynthetics seems set to go private. The multinational Royal Ten Cate NV (AMS:KTC), based in the Netherlands and listed on the NYSE EuroNext exchange, has received a buyout proposal from the private equity group Gilde Buy Out Partners.
The deal has quickly received a number of irrevocable agreements and cash has been proven on hand to secure an outright buy at Euro 24.6 per share; but, the deal must still be finalized.
The proposed offer is 27% above the per share price as of the close of Friday’s market.
Tencate is a major producer of geosynthetics, synthetic turf, protective fabrics, and composites. It has a large portfolio of work in infrastructure, sport engineering, defense, and aerospace. In the geosynthetics arena, key brands include Geotube®, Mirafi® geotextiles (e.g., H2Ri, RSi), Miragrid®, Miramesh®, GeoDetect®, and MPV Paving Fabric.
Bloomberg reports that the deal is for Euro 675 million (USD $731 million), representing 11.3 times earnings before interest, tax, depreciation and amortization over the past year. Recent similar deals have occurred at 9.8 earnings.
In a statement, Tencate President and CEO, Loek de Vries, said the offer “represents positive news for all stakeholders involved in our company. Both our employees and our customers will benefit from the longer-term horizon the consortium will bring.”
As of the offer, no significant changes are anticipated. The executive board will remain in place if and when a final deal is settled. Tencate will still operate globally with international leadership remaining in Almelo, the Netherlands. And, Tencate’s brands will not be impacted.
Learn more at www.tencate.com.