Friday, March 12, 2004
|
Friday, March 12, 2004 |
| Dutch company buys Southern Mills Royal Ten Cate, a Dutch-based multinational in technical textiles, announced this week that it has entered into a letter of intent to acquire Union City-based Southern Mills, Inc., to strengthen its position in niche markets and advance Royal Ten Cate’s global investment in technical textiles. Terms of the proposed transaction were not disclosed. Southern Mills will maintain its current name as part of the acquisition and will remain headquartered in Union City. One of the largest privately held companies in Georgia, Southern Mills manufactures a variety of leading textile and textile-related products. Founded in 1925, it is the pre-eminent manufacturer of fire protective clothing fabrics in the United States and the premier supplier of Nomex, Kevlar, and Pbi fabrics. Southern Mills employs more than 600 associates and operates five manufacturing facilities in Georgia, including two facilities in Senoia and others in Union City, Newnan, and Molena. With the acquisition, Royal Ten Cate becomes the world’s largest manufacturer of flame-resistant fabrics and acquires a company known industry-wide for its commitment to quality, innovation and customer service. Royal Ten Cate is already a leader in flame resistant fabrics in Europe through its company, Ten Cate Protect. “The product-market-technology combinations between Southern Mills and Ten Cate Protect are perfectly complementary,” said Loek de Vries, chairman of the executive board of Royal Ten Cate. “This acquisition is just another step in advancing Royal Ten Cate’s commitment to growing in the field of personal protection textiles technology.” According to David Clarke of Royal Ten Cate USA, Inc., the move to purchase Southern Mills represents an immediate opportunity to expand in the marketplace. “Royal Ten Cate’s success and reputation are built on superior technology and dominance in specific markets around the world,” said Clarke. “Southern Mills provides us with proven technology to continue to expand in key markets and serve our diverse customer base. Southern Mills is an excellent long-term fit, and we see numerous opportunities for growth as a result of this acquisition.” Clarke, currently a group director for Royal Ten Cate USA, Inc., is also responsible for Ten Cate’s US textile operations. He said Southern Mills will retain its name and operate autonomously within the Royal Ten Cate organization. “Close cooperation and coordination will be the hallmarks of our relationship with Southern Mills. We see many joint opportunities between Southern Mills and Ten Cate Protect, and we are pleased to announce that Doug Ellis, chairman of Southern Mills, will join our Royal Ten Cate USA board.” The vision of Royal Ten Cate is to be the leading company in global niches with high- performance textiles in protection and safety areas. The company is also active in anti-ballistic composite materials, plates for armored vests and vehicle protection. Other key product/market combinations include synthetic turf, composite materials for the aircraft and space industry — and a wide range of geosynthetics and other technical textiles for construction, environmental and agricultural applications. “For many years, I have admired the way Royal Ten Cate manages its business, innovates and meets customer expectations,” said Doug Ellis, chairman of the board of Southern Mills. “In 1996, we began a strategic alliance with Royal Ten Cate, which has been mutually beneficial. We have made an important decision to sell to Royal Ten Cate, and this decision is the right one, starting with the belief that our relationship is founded on mutual trust and respect. The pooling of our resources — including top associates, technology and marketshare — will provide us a stronger voice and broader reach.”
| ||