IVL to acquire Performance Fibres in China
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Indorama Ventures (IVL), one of the world's foremost petrochemical producers, has reached a definitive agreement to acquire one of the world's premium automotive fibre businesses, Performance Fibres Asia, including all its Asian manufacturing operations a
Under the deal of which financial value is not disclosed, IVL will make the acquisition from an affiliate of Sun Capital Partners Inc, a leading private investment firm specialising in leveraged buyouts and investments in market-leading companies.
Performance Fibres Asia is the premier producer of tire fabrics in the region and is the 2nd largest production facility of its kind in China. Asia is the largest and fastest-growing market for tires globally, accounting for more than 50 per cent of global tire demand in 2013 and expanding at 8 per cent per annum over the last five years.
In a statement, IVL said that the acquisition represents its continued strategy to increase and strengthen its presence in the high value-added (HVA) automotive safety applications. Performance Fibres Asia brings together a broad and complementary portfolio of innovative products to IVL, following the acquisition of PHP fibres and Trevira in the last two years. The combined three businesses are expected to have annual revenue of at least US$850 million.
