Indorama Ventures acquires Performance Fibers Asia
December 09, 2014 - Thailand
Thailand based and Aloke Lohia led, Indorama Ventures PCL (IVL) has reached a definitive agreement to acquire Performance Fibers Asia, a producer of tire fabrics.
The deal includes all Asian manufacturing operations of Performance Fibers and the right to continue using the name Performance Fibers.
IVL will make the acquisition from an affiliate of Sun Capital Partners, a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies.
Performance Fibers Asia is the premier producer of tire fabrics in the region and is the second largest production facility of its kind in China.
“Asia is the largest and fastest-growing market for tires globally, accounting for more than 50 per cent of global tire demand in 2013 and expanding at 8 per cent CAGR over the last five years,” IVL says.
IVL informs, “This acquisition represents the continuation of IVL’s strategy to increase and strengthen its presence in the high value-added automotive safety applications.”
“Performance Fibers Asia brings together a broad and complementary portfolio of innovative products to IVL, following the acquisition of PHP Fibers and Trevira in the last two years,” it adds.
The combined three businesses are expected to have annual revenue of at least $850 million.
The Performance Fibers business in Europe and the Americas will continue to operate separately under the ownership of Sun Capital and the leadership of the existing management team in those regions.
Performance Fibers Asia production facilities are strategically situated in the Pearl River Delta city of Kaiping, where IVL’s Guangdong facility is located.
IVL is a supplier of specialty PET polymers from the Guangdong facility, providing immediate synergies in the raw material supply chain and operational excellence.
Aloke Lohia, Group CEO says, “This acquisition is a great strategic fit for IVL. We are acquiring a company that has an established premier position in the life-critical end-use applications in the tire industry across the world.
“The company has a proven management team with a track record of value creation, expanding the business at 17 per cent CAGR over the last 4 years.”
The transaction closing is expected in the next three months subject to customary regulatory approvals. (AR)
The deal includes all Asian manufacturing operations of Performance Fibers and the right to continue using the name Performance Fibers.
IVL will make the acquisition from an affiliate of Sun Capital Partners, a leading private investment firm specializing in leveraged buyouts and investments in market-leading companies.
Performance Fibers Asia is the premier producer of tire fabrics in the region and is the second largest production facility of its kind in China.
“Asia is the largest and fastest-growing market for tires globally, accounting for more than 50 per cent of global tire demand in 2013 and expanding at 8 per cent CAGR over the last five years,” IVL says.
IVL informs, “This acquisition represents the continuation of IVL’s strategy to increase and strengthen its presence in the high value-added automotive safety applications.”
“Performance Fibers Asia brings together a broad and complementary portfolio of innovative products to IVL, following the acquisition of PHP Fibers and Trevira in the last two years,” it adds.
The combined three businesses are expected to have annual revenue of at least $850 million.
The Performance Fibers business in Europe and the Americas will continue to operate separately under the ownership of Sun Capital and the leadership of the existing management team in those regions.
Performance Fibers Asia production facilities are strategically situated in the Pearl River Delta city of Kaiping, where IVL’s Guangdong facility is located.
IVL is a supplier of specialty PET polymers from the Guangdong facility, providing immediate synergies in the raw material supply chain and operational excellence.
Aloke Lohia, Group CEO says, “This acquisition is a great strategic fit for IVL. We are acquiring a company that has an established premier position in the life-critical end-use applications in the tire industry across the world.
“The company has a proven management team with a track record of value creation, expanding the business at 17 per cent CAGR over the last 4 years.”
The transaction closing is expected in the next three months subject to customary regulatory approvals. (AR)