TenCate acquires controlling interest in Xennia Technology
TenCate has reached an agreement to purchase 75% of the issued share
capital of Xenia Technology Ltd., a Cambridge based leading
specialist in the area of inkjet technology for the development of
inks / coating fluids and related steering technology (software). The
company owns a strong intellectual property portfolio and a number of
key technology platforms for both inks / coating fluids and hardware.
TenCate already works closely together with Xennia in connection with
the Digitex project, a subsidized EU Framework development project
for digital textile finishing. The joint patent position will form
the basis for future developments in the area of surface nano
technology in technical textiles.
For TenCate this technology driven acquisition is important to own
and jointly develop key knowledge for the application of coatings and
related chemicals on textile materials and other substrates, enabled
by a (digital) technology that works on nano scale. Xennia is a
worldwide leader in this field, for other applications outside the
technical textiles sector.
Cambridge is the centre of excellence for inkjet technology. Xaar
plc., also based in Cambridge, is the other industrial shareholder in
Xennia. Xaar is a leading specialist in inkjet printheads (nozzles).
Xaar is partner in the Digitex project as well. The management of
Xennia with retain 16% of the shares.
Xennia
Xennia, founded in1996, is based in the UK and also has a technology
team in the United States of America. It is currently involved in
contract R&D and develops and manufactures inks and fluids for a
diverse range of specialty applications. Inkjet is increasingly being
seen as more than just a printing technique. It can also be an
accurate and precise deposition manufacturing tool, suited to produce
a vast array of materials for various applications.
Xennia's customers include global "blue chip" companies, equipment
companies, and high- tech innovative start ups. In 2005 Xennia
launched its Xenjet® brand for its hardware and ink products. The
average sales growth of Xennia has been 35% in the last three years
with a level of approximately GBP 7 million in 2007.
Digitex project
TenCate announced earlier a revolutionary development in connection
with textile finishing called the Digitex project. The purpose of
this development is to produce functional textile materials (smart
textiles, innovative technical textiles) with functionalities and
qualities that could not be produced in the traditional way. This
method of production is to a large extent based on inkjet technology
in order to apply coatings on substrates at a nano scale. For this
new technology hardware, software and chemicals / fluids need to be
developed. Also, massive environmental cost savings will be created
as a result of this new technology and machine configuration.
At the moment the development reaches a point that production on lab
scale shows feasible results, which also forms the basis to acquire
this strategic interest in Xennia. The project now enters into a
phase of developing commercial applications for textile finishing.
These activities will take place with TenCate in the Netherlands.
Xennia is actively involved in several projects for a variety of
industries, amongst others packaging, product decoration and printed
electronics. TenCate will not broaden its scope of activities and
will only secure its position in the Digitex project, which is of
large importance for its textile finishing activities.
Other information
Xennia will not change its strategic focus after the acquisition of a
majority share in the company by TenCate. Xennia wants to make a
significant impact in the emerging industrial inkjet sector. Through
TenCate, currently also the technical textiles sector has come into
the scope of Xennia's activities and reached a significant
technological leap forward with this joint technological development.
Since projects, amongst others Digitex, are still in a development
stage no further details will be made public at this stage.
The activities of Xennia do not have an overlap with the activities
of TenCate Enbi, a producer of (technical) rollers for mainly desktop
printers. TenCate Enbi is mainly an OEM supplier of technical rollers
for laser and inkjet printers.
Royal Ten Cate
Almelo, 29 January 2008
For further information:
Frank Spaan
Director corporate development & investor relations
Tel: +31 546 544 338
Mob: +31 6 12 96 17 24
e-mail: f.spaan@tencate.com
www.tencate.com
Website Xennia: www.xennia.com
Website Xaar: www.xaar.com