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UPDATE 1-TenCate ups stake in synthetic turf firm GreenFields

Published 01/06/2011, 03:23 AM
Updated 01/06/2011, 03:32 AM

* Agrees capital injection for GreenFields

* Takes majority stake from earlier 32 percent stake

* TenCate shares slip 0.3 percent

AMSTERDAM, Jan 6 (Reuters) - Dutch specialty textiles and materials firm TenCate said on Tuesday it would take a majority stake in privately-held GreenFields as it seeks to take further control of the synthetic turf production process.

TenCate said it had agreed with GreenFields shareholders about a capital injection, allowing TenCate to take a majority interest in the company, but did not provide financial details.

Spokesman Frank Spaan added that TenCate, which makes protective fabrics and armour for the U.S. military and synthetic grass for sports pitches, had not yet decided how big its stake in GreenFields would be.

In its 2009 report, TenCate said it had a 32 percent stake.

In August, TenCate said it would increase its war chest as it signalled a return to acquisitions after the credit crisis.

It's shares dipped 0.3 percent in early trading.

Dutch-based GreenFields is a FIFA 'preferred producer' that handles a major share of the FIFA-related market, and TenCate said the acquisition will give it greater control and quality assurance over the entire synthetic turf manufacturing process.

TenCate also said it had signed a letter of intent with C.S.C. Ceelen Sport Constructies for joint product and system development as well as the distribution of GreenFields turf systems in the Dutch market. (Reporting by Aaron Gray-Block; Editing by Hans Peters)

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