On September 20, 2019, global technology group cordbao made an offer to acquire 100% of low & Bonar, a London based company. Low & Bonar is an active technical textile manufacturer in the world, and the acquisition will enable cordebo to further expand its technical expertise in the field of nonwovens. In addition, the acquisition will open up new business areas for the company.
In the past fiscal year, low & Bonar has approximately 1900 employees worldwide, generating sales of approximately £ 350 million (at current exchange rates of approximately € 394 million). The proposed acquisition will also require the approval of the low & Bonar shareholders as well as the approval of the antitrust authorities. Low & Bonar is listed on the London Stock Exchange and is a FTSE FTSE all share index company.
Low & Bonar PLC, a high-performance materials company, said Friday it had agreed to a £ 107 million offer from FV beteiligungs GmbH, a subsidiary of German conglomerate fredenberg se.
Under the terms of the deal, cordeball will buy low & Bonar for 15.5p a share, double its closing price of 7.7p on Thursday. London's low & Bonar shares closed down 7.9 percent at 7.12 pence on Friday. The acquisition is subject to the approval of at least 75% of shareholders at court meetings and extraordinary general meetings, as well as the approval of the Edinburgh court of meeting.
'Through the acquisition, we hope to strengthen our functional materials business, and with the help of low & Bonar's innovative technology, we can further expand our technical knowledge,' said Dr. Mohsen SOHI, chief executive officer of the company
Further expand spunbond nonwovens business
'As a pioneer in nonwovens production, Codbo has been providing customers with solutions based on one-step production since 1968. Low & Bonar's two-step production solution will give us more flexibility and enable us to tailor our solutions to the needs of our customers. ' Explained Dr. Frank heislitz, chief executive officer, high performance materials, cordebo. In addition, the company will be able to provide customers with a wider range of products, especially in existing applications in the fields of architecture, interior decoration, home textiles and automobiles.
'Through low & Bonar's proximity technology, we will also open up new areas of activity through the new application of cordbao,' heislitz said
International presence
Founded in 1903 and headquartered in London, low & Bonar has 11 production bases in Asia, Europe and North America. The company aims to expand its international reach by growing strongly in markets around the world. With decades of successful operations in the U.S. and China, it is an ideal partner to implement the strategy.
Same understanding of quality and Sustainability
Like low & Bonar, cordebo uses advanced technology in the development and production of fabrics and textiles, as well as in the finishing of textiles and materials. The products of both companies are famous for their excellent quality.
In terms of sustainable development, cordebo and low & Bonar adopt the same approach. Both companies aim to take responsible and sustainable action. Sustainability is integrated into the product cycle: from the use of raw materials and energy to the entire manufacturing process, not only in line with international standards, but even beyond.
Low & Bonar expects the acquisition to be completed in the first half of 2020. So far, the company has obtained irrevocable acceptance rights from about 442.1 million shares of the company, accounting for 64% of the total issued share capital of low & Bonar.
'I am pleased that FVB has made an attractive cash offer to acquire low & Bonar. During my short term at low & Bonar, the strengths of our staff, technology and market position are obvious, but the group is facing a challenging financial situation and a highly competitive market. ' Executive chairman Daniel Dayan said.
Dayan added: 'the company will provide low & Bonar's businesses and people with opportunities for development and growth, and enhance their value proposition for their customers.'
Also on Friday, low & Bonar said tough trading conditions in the first half of the year to the end of May continued into the second half, resulting in lower sales and profit than management expected for the third quarter to August 31.
Looking ahead, the company said it does not expect market conditions to improve in the short term, so low & Bonar is not expected to close the gap in the third quarter of this year.