Nonwovens manufacturer Fiberweb has acquired Tubex, the parent company of the Tubex Group of companies. The deal, said to be worth £5.1 million, will be funded by a combination of cash, £3.85 million, as well as the transfer of £1.8 million worth of Fiberweb shares to existing Tubex shareholders.
Tubex, a private company based in Wales and owned by the management team and Shackleton Ventures, produces tree shelters designed to improve the survival and growth rates of saplings and vines. The company is considered complementary to Fiberweb's Acorn tree shelter business which is based in Suffolk.
Chief executive of Fiberweb, Daniel Dayan, says that the proceeds of a recent rights issue has enabled the business to fund the acquisition of Tubex.
“Acquiring a leading niche market position in a business closely-related to an existing Fiberweb business is highly attractive and we will apply the scale and geographic reach of Fiberweb to accelerate Tubex's growth in international markets while realising efficiencies in production and distribution,” he explained.
In December, Fiberweb paid £9.4 million to buy out Essex-based geosynthetic and accessory manufacturer Boddingtons International.