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Indorama Ventures to acquire 65% stake in Avgol Industries

14 May '18

2 min read

Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into a definitive agreement to acquire a 65.72 per cent stake in Avgol Industries 1953 Ltd., for a sum of US$ 1.62 per share. Avgol is one of the largest manufacturer of nonwovens for hygiene applications in the world, based in Israel.

The transaction is expected to be completed during the second half of 2018, subject to regulatory approvals. This acquisition represents a unique opportunity for IVL 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.

Aloke Lohia Group CEO of IVL said, “We are excited by the unique opportunity to bring Avgol into the IVL 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 IVL’s 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. (GK)

Fibre2Fashion News Desk – India