Indorama Ventures to Acquire Avgol Industries

Stocks and Financial Services Press Releases Monday May 14, 2018 17:17
Bangkok--14 May--Indorama Ventures
  • Attractive acquisition in HVA nonwoven business
  • Acquisition strengthens Indorama's global footprint in leading markets
  • Deepens relationships with global brands through long-term partnerships and
  • More than doubles IVL's HVA personal hygiene portfolio

Indorama Ventures Public Company Limited (IVL), a global chemical producer, announced that it has entered into a definitive agreement to acquire a 65.72% stake in AVGOL INDUSTRIES 1953 LTD., an Israel-listed global manufacturer for a sum of US$ 1.62 per share. Avgol has six production sites globally in Israel, the US, Russia, China and India, with a combined production capacity of 203,000 tonnes/annum, and employing 900 employees worldwide.

The transaction is expected to be completed during the second half of 2018, subject to regulatory approvals.

Avgol is the 3rd largest manufacturer of nonwovens for hygiene applications in the world, and holds a global market share of 10%. Avgol's high-performance nonwoven fabrics are used by leading manufacturers of baby diapers, feminine hygiene products and adult incontinence products. Avgol also offers advanced solutions leveraging its proprietary technology such as AVSPUN and AVSOFT hydro-entangled spun laid fabrics, which address consumer requirements, including that of thinner, more discrete, softness, and higher performance products.

This acquisition represents a unique opportunity for Indorama Ventures to strengthen its leadership position in the high-growth personal hygiene oriented nonwovens market. Avgol offers IVL further diversification of its High value-added (HVA) portfolio. The acquisition will allow both companies to provide customers with a comprehensive range of products. Indorama Ventures will also be well-positioned to generate future growth in adjacent segments through its strong innovation pipeline, enabling the Company to continue to provide compelling value and service to its customers worldwide.

The hygiene industry is the largest consumer of disposal nonwovens. The global hygiene market is projected to grow at a rate of 6-7% annually. Demand for nonwoven hygiene products continues to be favourable, driven by the growth in developing markets and the increase in GDP per capita, especially in South America, Africa and Asia (such as China and India), and ongoing demographic shifts. The increase in usage of adult incontinence products, which incrementally use 6 times the number of fibers, is further accelerating the overall growth in the industry.

Commenting on the acquisition, Mr. Aloke Lohia Group CEO of Indorama Ventures, said, "We are excited by the unique opportunity to bring Avgol into the Indorama Ventures family as it is a major step into expanding our HVA portfolio. With this acquisition, we are adding a company that has a distinctive position within a compelling segment and with strong growth prospects. Avgol has already made some significant investments to grow the business by expanding its production capacity and geographical footprint and we hope to capture the benefits and help the company reach further heights. Avgol's established client base, complementary capabilities and substantial presence in high-growth markets, together with Indorama Ventures' global presence, will provide a strong opportunity for creating additional value to best serve all our customers."

The transaction was engineered by Rothschild & Co who acted as sole financial adviser to Indorama Ventures. Legal advice was provided by HFN in Israel and KPMG provided financial due diligence support.
About Indorama Ventures

Indorama Ventures Public Company Limited, a DJSI member, listed in Thailand (Bloomberg ticker IVL.TB), is one of the world's leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America. The company's portfolio comprises Necessities and High Value-Added (HVA) categories of Polymers, Fibers, and Packaging, selectively integrated with self-manufactured Ethylene Oxide/Glycols and PTA where economical. Indorama Ventures products serve major FMCG and Automotive sectors, i.e. Beverages, Hygiene, Personal Care, Tire and Safety segments. Indorama Ventures has approx. 15,000 employees worldwide and consolidated revenue of US$ 8.4 billion in 2017.

Indorama Ventures is headquartered in Bangkok, Thailand with global operating sites in
EMEA:
The Netherlands, Germany, Ireland, France, UK, Italy, Denmark, Lithuania, Poland, Czech Republic, Luxembourg, Spain, Turkey, Nigeria, Ghana, Portugal
North America:
USA, Mexico, Canada
Asia:
Thailand, Indonesia, China, India, the Philippines, Myanmar

Latest Press Release

AEON partners with JCB to launch AEON J-Premier Platinum Credit Card to offer exclusive privileges throughout Thailand and Japan

AEON Thana Sinsap (Thailand) Public Company Limited partners with JCB International (Thailand) Co., Ltd. to launch "AEON J-Premier Platinum Credit Card" that will allow Thais to enjoy everything Japan, with exclusive privileges and offers in dining,...

China and Europe post double digit increases in RD spending

- China and Europe increase R&D spending the most as global R&D investment reaches US$782bn - 88 companies outperform industry peers on sustained financial success with modest R&D spend - Amazon retains top spot as world's largest corporate...

Photo Release: EXIM Thailand Hosts 6th Council of Specialized Financial Institutions Meeting in 2018

Mr. Pisit Serewiwattana (forth right), President of Export-Import Bank of Thailand (EXIM Thailand), welcomed Mr. Pornchai Triraveja (fifth right), Fiscal Policy Advisor of Fiscal Policy Office (FPO), and Mr. Chatchai Sirilai (fifth left), President of...

Kinesis Money and Allocated Bullion Exchange Explore Creating a Joint Commercial Blockchain Venture with Jakarta Futures Exchange in Indonesia

Today, Jakarta Futures Exchange (JFX), the leading futures and derivatives exchange group in Indonesia, have announced an expanded Memorandum of Understanding (MOU) with Kinesis Money and Allocated Bullion Exchange (ABX). The partnership will seek to...

Photo Release: SCB and Mae Fah Luang University Make Headway for Cashless Society with Smart University Program

"The Siam Commercial Bank (SCB)", the leader in digital lifestyle banking, continues to pave way for a cashless society at universities across Thailand. The partnership with Mae Fah Luang University continues its "Smart University" program. MFU App is...

Related Topics