Gilde et al. to de-list TenCate in €675m take-private

The €675m take-private, expected to go forward between September and October 2015, will feature a €362.5m equity injection jointly provided by Gilde, Parcom and ABN Amro.

The trio have agreed to wholly acquire TenCate's shares via the Tennesee Acquisition newco, at €24.6 per share. According to TenCate, the price represents a 26.8% premium over the closing price on 17 July 2015.

The de-listing will see TenCate CEO Loek de Vries and investment holdings Delta Lloyd Deelnemingen, Delta Lloyd Levensverzekeringen and Delta Lloyd wholly divest the joint 16% shareholding they currently control. In addition, de Vries is expected to reinvest some of the proceeds.

The group is set to pursue the buy-and-build strategy it has followed since 2000 across its five business areas: protective fabrics, advanced composites, advanced armour, geosynthetics and synthetic grass. Additional capital is to be dedicated to product development as well as research and innovation.

TenCate had been listed on the Amsterdam stock exchange since May 1954. Since then, the business completed several carve-outs, according to unquote" data. In February 2006, its packaging-focused business unit Plasticum Group was carved out by Amsterdam-based firm NPM Capital, which secured a 60% stake.

Most recently, Almelo-headquartered print-roller supplier TenCate Enbi was sold to US firm Platinum Equity. The buyout, announced in January 2015, saw the GP deploy equity via its $3.75bn buyout fund.

Debt
TenCate's de-listing will be supported by a €520m debt package supplied by ABN Amro Bank and Rabobank, as well as an additional €75m revolving facility.

Company
With roots dating back to 1704, TenCate designs, produces and markets textile goods including industrial fabrics, synthetic grass, advanced composite materials and printing rollers and components. Its products target customers within the safety and protection, aerospace, infrastructure and sport and recreation sectors.

With headquarters in Almelo, the company employs a workforce of 4,500 professionals. It posted €35.6m in operating profits and €1.01bn in turnover in 2013. According to figures for the same year, sales were primarily made in North America (45.2%), followed by the Netherlands (21%), Europe (19.9%) and Asia and Australia (13.9%).

People
Gilde Buy Out Partners was represented by partner Hein Ploegmakers. Loek de Vries is CEO at TenCate.

Advisers
Equity – ING Corporate Finance (Corporate finance); Clifford Chance (Legal).
Company – De Brauw Blackstone Westbroek (Legal). 
Management – Allen & Overy (Legal).

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• Topics
• Benelux
• Buyouts
• Industrials
• Netherlands
• Gilde Buy Out Partners
• ABN Amro
• Take Private
• unq2015sep