13 May 2018
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
DETAILS
- 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)
announced that it has entered into
a definitive agreement
to acquire a 65.72% stake in
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.
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.
Mr. Aloke Lohia
Group CEO of Indorama Ventures
“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
VIEW FULL PRESENTATION OF AGVOL ACQUISTION
Contacts
Richard Jones
Tel: +662.661.6661 ext. 680
richard.j@indorama.net
Naweensuda Krabuanrat
Tel: +662.661.6661 ext. 247
naweensuda.k@indorama.net
Sources: www.set.or.th,
www.indoramaventures.com
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