Indorama Ventures Public Co. Ltd., headquartered in Bangkok, has signed an agreement to acquire Invista B.V.’s PET (polyethylene terephthalate) polymer and resin manufacturing facilities in Spartanburg, S.C., and Querétaro, Mexico.
The total value of the acquisition will be $420 million, less certain assumed liabilities. The transaction is expected to close by the first quarter of 2011, pending receipt of necessary regulatory approvals.
Invista’s Spartanburg facility produces polyester resins used in bottles for carbonated soft drinks, water, beer, juice and wine; in food and custom-container applications; and in polyester staple fiber and specialty polymers for a variety of applications. The facility has a total capacity of 470,000 tons per year.
Invista’s Querétaro facility produces polyester resins and polyester staple fiber similar to that produced at the Spartanburg operation. Querétaro has a total capacity of 535,000 metric tons per year.
Indorama says the addition of these facilities will complement the company’s existing PET manufacturing site at Asheboro, N.C., and its PET resin facility in Decatur, Ala.
“This planned acquisition will allow Indorama 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,” says Aloke Lohia, group CEO of 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,” Lohia adds.
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