Dutch glass fibre-reinforced composites specialist Royal Ten Cate (Nijverdal; www.tencate.com) said that it is recommending a takeover offer from a consortium of investors led by Dutch private equity investor Gilde Buy Out Partners (http://gilde.com), which has announced its intention of a public offer for all shares in Ten Cate that values the company at around EUR 675m. The company has convened an extraordinary general meeting of shareholders to be held on 7 December 2015 to discuss the offer.

In a statement, Ten Cate described the offer as “compelling” for all its stakeholders and said it would allow the company to realise its business strategy, enabling it to improve and invest in its existing five market groups (protective fabrics, advanced composites, advanced armour, geosynthetics and grass) and to strengthen these market groups further through acquisitions.

The company also published a third quarter 2015 trading update, reporting a 9.5% year-on-year increase in operating profit (EBITA) to EUR 19.5m in the period, on sales up 7% at EUR 297m. For the full year 2015, it expects organic sales growth similar to 2014. EBITDA before exceptional items is forecast to be around EUR 95m, up from EUR 85m in 2014.

Third quarter sales from military protective fabrics were according to expectations, with “Defender” M thermal barrier sales increasing sharply year-on-year. Industrial protective fabrics sales were increasingly affected by the negative developments in the oil and gas industry following the globally lower crude oil prices, the company said.

Advanced composites sales reflected the trend of growing volumes in aerospace for structural parts and radomes, with increasing interest in thermoplastic composites from large aircraft manufacturers. The company said it expects to start a qualification process in the fourth quarter of 2015 for extended use of its thermoplastic composites in the manufacturing of parts for future generations of commercial aircraft.