Thailand-based Indorama Ventures PCL (IVL) — an integrated manufacturer of PTA, polyethylene
terephthalate (PET) and polyester — has announced it will buy two PET polymer and resin businesses
from Wichita, Kan.-based Invista — one located in Spartanburg, and one in Querétaro, Mexico.
The Spartanburg facility has an annual capacity of 470,000 metric tons, and manufactures
polyester staple fiber and specialty polymers; as well as polyester resins for bottles, food and
custom-container end-uses. The plant in Querétaro has an annual capacity of 535,000 metric tons and
produces products similar to those manufactured in Spartanburg. The Spartanburg plant employs
approximately 490 people, and the Querétaro facility employs some 510 associates. All staff
associated with both operations — including staff at administrative offices in Charlotte and Santa
Fe, Mexico — are expected to continue employment with Indorama once the sale is finalized.
The purchase — valued at $420 million less certain assumed liabilities, including $229
million for net fixed assets and equity interests, and $174 million for the net working capital of
the business — will be financed through a combination of cash, existing credit and debt. Both
companies expect the deal to close sometime during the first quarter of 2011. Indorama reports it
expects the acquisition to be accretive to earnings within its first full year of operation.
Invista will maintain the rights to certain intellectual property related to the polymer and
resins business. The deal does not include Invista’s Wilmington, N.C.-based or Europe-based polymer
and resins businesses.
“This planned acquisition will allow IVL to build upon our expanding global platform, make
the company the largest PET producer in the world, and deliver on our strategy to enter into new
higher growth regions like Central and Latin America,” said Aloke Lohia, CEO, Indorama Ventures.
“We believe these valuable assets will further strengthen our capability and reinforce our ongoing
commitment to the PET and Fiber business. We are truly excited as such million ton opportunities
are seldom available. Furthermore, Invista’s innovative products and a recognized brand will allow
Indorama Ventures to enhance its value proposition to its customers and stakeholders, considering
the depth of management and knowledge that reside at these facilities supporting manufacturing,
R&D and post consumer recycling.”
November 17, 2010