Dutch specialty chemical company Royal Ten Cate has announced that it is to sell Ten Cate Permess (the Netherlands, Italy and the United Kingdom) and Multistiq (the Netherlands) to their respective management. The transaction will be completed before the end of November. The sale, which will take place at book value, will amount to €10 million in net assets.

Ten Cate Permess operates in the field of interlinings, which are used to reinforce clothing. Major customers include fashion chains and manufacturers of designer clothes for women and men's fashions. It recorded a drop in sales and margins as a result of the weaker dollar, which caused a decline in the company's competitive position as a European-based manufacturer. Production at Ten Cate Permess was considerably scaled down in 2004 and at the beginning of 2005, which involved reorganisation costs. As a result, a loss occurred that adversely affected the result of the Advanced Textiles & Composites sector in the current financial year. However, according to a statement from Ten Cate, a healthy basis for the future has been created for Pemess.

Multistiq is a specialist supplier of basic materials for labels; its major customers are to be found in the carpet and graphics industries.