- September 19, 2003, PRESS RELEASE
COMO, ITALY—BBA Group plc recently announced an agreement under which it will acquire the privately owned Italian nonwoven manufacturer Tecnofibra Spa. According to BBA Group, it will buy Tecnofibra for Euro 31.8 million "on a debt-free, cash-free basis." Completion of the sale is expected by the end of 2003.
According to BBA, Tecnofibra develops, produces, markets, and distributes spunlace, thermo-bond, and needle-punched nonwoven material for the European wipes markets. Last year (ending December 2002), the acquiring company says Tecnofibra generated turnover of Euro 43.8 million, with margins of approximately 10 percent. Net assets after sale completion, adds BBA, will be about Euro 13 million, and new capacity implemented in 2002 is expected to improve Tecnofibra's financial performance in 2003.
Says BBA Group chief executive Roy McGlone, "This acquisition is part of our strategy of increasing our presence in the higher value-added sectors of the industrial and medical materials technology markets. Tecnofibra enhances [our] position in the industrial nonwoven marketplace, particularly in the growing wipes market, and it provides a better balance with our hygiene business in Europe." Visit BBA Group plc at bbagroup.com.