Indorama Ventures PCL (IVL), one of the world’s foremost petrochemical producers, is set to acquire one of the world’s premium automotive fibre businesses, Performance Fibers Asia. The acquisition includes the Asian manufacturing operations and the right to continue using the name Performance Fibers. However, financial terms of the agreement are yet to be disclosed. The transaction closing is expected in the next three months subject to customary regulatory approvals. The annual revenue of combined three businesses is expected to be valued at US $ 850 million. Apart from that, 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.
“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 and 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. Our specialty polymers, fire retardant yarns, and airbag yarns businesses together with Performance Fiber Asia’s tire fabrics will create scale as well as operational and technical leverage to firmly place Indorama Ventures amongst the leading brands in automotive safety applications worldwide,” stated Aloke Lohia, Vice Chairman and Group CEO, Indorama Ventures.
