Home / Knowledge / News / Textiles / Low & Bonar acquires coated fabrics firm MTX Group

Low & Bonar acquires coated fabrics firm MTX Group

03
Dec '07
The specialist materials group Low & Bonar announces the proposed acquisition of MTX Group at a valuation of €166.0 million (approximately £119.4 million) on a cash-free and debt-free basis.

Acquisition highlights:
•MTX Group is a leading producer of technical coated fabrics with headquarters in Hückelhoven, Germany. Its members are wholly-owned subsidiaries of Mehler AG, a part of KAP Beteiligungs-AG. It produces premium materials for a variety of uses including, inter alia, side curtains for the transport market and fabrics for the architectural and print markets.
•For the financial year ended 31 December 2006, MTX Group reported consolidated EBITDA of €18.4 million (approximately £12.5 million) and EBIT of €14.6 million (approximately £9.9 million) on revenue of €133.1 million (approximately £90.5 million).
•The Acquisition represents another major step forward in pursuing Low & Bonar's growth strategy and is expected to reinforce the Company's position as a major international producer of industrial technical textiles. The Company also believes that consolidation opportunities within the technical coated fabrics market should offer further value creation potential.
•MTX Group's product focus is complementary to Low & Bonar's technical textiles business and there are likely to be cross-selling opportunities in the building and construction end-markets as a result of the Acquisition.
•The Company also believes that it can improve certain aspects of MTX Group's working capital management, increase its weaving and coating production efficiencies and enhance its innovation capabilities.
•Furthermore, the Company believes that there are likely to be opportunities for raw material cost savings and that the Acquisition would diversify further raw material purchases and reduce the seasonality of sales and profits for the Enlarged Group.
•The Acquisition is expected to be funded by a combination of existing and new financial resources. Low & Bonar currently has in place Existing Debt Facilities with in excess of £100 million of undrawn commitments and RBS and Bayerische Landesbank have agreed to provide a New Debt Facility of €90 million (approximately £64.7 million).
•The Board believes that the Acquisition will enhance the Company's earnings per Ordinary Share in the financial year ending 30 November 2008 (earnings per Ordinary Share stated before amortisation and non-recurring items).


Must ReadView All

Pic: Shutterstock

Apparel/Garments | On 14th Aug 2020

Cambodia prepares to face upshot of partial EBA withdrawal

As the preferential treatment Cambodia enjoyed under the European...

Pic: USDA/FAS

Textiles | On 14th Aug 2020

India & Brazil push world cotton stocks to high level

World cotton stocks remain high as the Minimum Support Price (MSP) in ...

Pic: Shutterstock

Apparel/Garments | On 14th Aug 2020

Apparel production in Vietnam fell by 4.6% YoY in Jan-Jul

In the first seven months of this year, textile production in Vietnam ...

Interviews View All

Top executives, Textile & apparel bodies

Top executives
Textile & apparel bodies

The mid-term review of FTP is progressive, growth oriented

DK Sharma, Velocity Apparelz

DK Sharma
Velocity Apparelz

We constantly communicate with employees at all levels

Rajiv Sirohi, Shara

Rajiv Sirohi
Shara

‘Portugal is taking away a major share of the mill made sector.’

Oliver Schmitz,

Oliver Schmitz

Germany-based Gmöhling is a leading manufacturer of aluminium containers...

Paolo Crespi,

Paolo Crespi

For.Tex is an Italy-based leading producer of dyes and thickeners, and is...

Tejas N Patel, Navin D Patel,

Tejas N Patel, Navin D Patel

Founded in 1999 by Navin Patel in the name of Tejas Fabrics with 100...

Mr Hartmann Huth, Trevira GmbH

Mr Hartmann Huth
Trevira GmbH

Trevira GmbH is an innovative European manufacturer of high-value branded...

Razvan Popescu, Directa Plus SpA

Razvan Popescu
Directa Plus SpA

Directa Plus is one of the largest producers and suppliers worldwide of...

Kai Poehler, Voith Paper GmbH & Co. KG

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Nisha Chanda, Whistling Woods International School of Fashion

Nisha Chanda
Whistling Woods International School of Fashion

<div>A lack of upgraded courses in costume designing and fashion as per...

Mike Hoffman, Gildan Activewear SRL

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Chandani Sahi, By Chandani

Chandani Sahi
By Chandani

By Chandani is a womenswear prêt couture brand with fusion silhouettes by...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


August 2020

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Advanced Search