London, U.K.-based specialty materials group Low & Bonar plans to purchase nonwoven roll goods producer Colbond, Arnhem, The Netherlands, for $137 million on a cash-free and debt-free basis, subject to certain post-completion adjustments.
"The acquisition of Colbond represents a major step forward in our strategy of driving organic and acquisitive growth in our core markets," Low & Bonar chairman Duncan Clegg said in a statement.
The firm, which also has operations in China, France and Germany, expects the acquisition to be earnings-enhancing by November 2007. Low & Bonar sold its plastics unit last year to focus on its higher margin floors and yarns and fabrics divisions.
With production facilities in Germany and the U.S., Colbond supplies nonwovens for flooring, automotive and construction applications and three dimensional polymeric mats and composites for civil engineering. In 2005 Colbond BV’s sales totaled $184 million, according to Low & Bonar. The company employs 550 people.