The new company, which will employ 550 and achieve annual sales of DKK550 million, will aim to become a leading global supplier of advanced industrial textile products. It will produce materials in the U.S., Ireland and Germany.
Jacob Holm & Sons STA uses spunlace technology to produce textiles with special properties while Tytex works with advanced knitting technology featuring special features for global healthcare companies. The main product is intended for persons suffering from incontinence, and Tytex is the global market leader in this area. Other medical textiles include products for hip protection, nursing mothers, bandages for wound and skin care and orthopedic solutions.
“We are not combining the two companies in order to produce the standard tough-action cost synergies. We intend to exploit the fact that the two companies both develop and manufacture advanced textiles based on a high knowledge content and close partnership with customers. Also, both operate in markets driven by innovation. That is why the two companies can learn from each others’ experience and together build a global platform and a broader range of solutions to offer our customers. By combining the two technologies, we will also be able to design entirely new products to spur growth,” said Christian Møller, Partner with LD Equity, and Poul Martin Mikkelsen, Chairman of the Board of Jacob Holm & Sønner A/S in a joint statement.
The new company will bear the name of Jacob Holm & Sons STA, whereas Tytex Group will continue as a subsidiary under its own name and with its own brands. Poul Martin Mikkelsen, owner of parent company Jacob Holm & Sønner A/S, will be appointed chairman of the board of directors of Jacob Holm & Sons STA while Christian Møller, Stig Løkke Pedersen, executive vice president of H. Lundbeck A/S, and Martin Mikkelsen, attorney, will also serve on the board.
Peter Aggersbjerg, who was the CEO of Tytex from 2001 until April 2006, will become CEO of Jacob Holm & Sons STA. He orchestrated the company’s successful transition from a contract manufacturer to an innovative, market-driven healthcare company. Per Gernow will stay on as CEO of Tytex. Peter Opperman will resign from his position as CEO of Jacob Holm, effective at the end of 2006.
The Thygesen family based in Ikast, Denmark, who founded Tytex in 1971, are expected to join the group of owners behind Jacob Holm & Sons STA: “We believe that the combination of nonwovens technology and knitting technology is promising and that it provides the opportunity to develop exciting new products. As co-owners, we will be able to keep following the company closely and thereby also show the employees that our family still feels a strong connection to the company,” said Niels Laurits Thygesen, chairman of Thygesen Textile Group.
The owners aim to make Jacob Holm & Sons STA a leading player in the global market for textiles for healthcare and other special applications. Through consistent strong growth supported by acquisitions, the owners intend to groom the company for a flotation within three to five years.
Jacob Holm & Sønner A/S’ activities in the production of nonwovens for applications within personal hygiene, cosmetics and cleaning will continue without change and are expected to become an important business partner to Jacob Holm & Sons STA. The other activities of Thygesen Textile Group, knitted fabrics for the clothing industry and fabrics for the car industry, will also remain the same.