Performance Fibers Acquires INVISTA Resins & Fibers GMBH'S German Polyester Yarn Business
Company Continues Global Expansion, Adds Products and Enhances R&D Capabilities
Richmond, VA — An affiliate of Performance Fibers today announced that it has signed an agreement to acquire INVISTA Resins & Fibers GmbH's German polyester yarn business. Terms of the agreement were not disclosed.
The acquisition, which includes both commercial and manufacturing operations in Germany, represents the third major expansion of Performance Fibers' business in the past year and is a key component of the Company's growth strategy. In August 2005, Performance Fibers, an affiliate of Sun Capital Partners, Inc. ("Sun Capital"), the U.S.-based private investment firm, announced the acquisition of the North American business of Diolen Industrial Fibers, Inc., a leading producer of high-tenacity polyester yarns used in a wide variety of technical applications and tire reinforcement. In January 2005, Performance Fibers announced a greenfield expansion of its existing manufacturing operations in China, strengthening their position as a leading supplier of industrial fibers in China.
"The addition of these German operations will expand Performance Fibers' presence in Europe, add to our product portfolio and enhance our technical and research capabilities," said Greg Rogowski, President and Chief Executive Officer of Performance Fibers. "This agreement demonstrates our strong commitment to the industry and to our customers in every region of the world."
The current acquisition includes three manufacturing facilities – one each in the German cities of Bad Hersfeld, Bobingen and Guben – which produce industrial fibers for sewing thread, technical textiles and other industrial and specialty applications. The acquisition will enable Performance Fibers to provide customers with an expanded breadth of high-quality products, including a range of low-denier and high-denier industrial fibers for sewing thread and technical fabrics used in hoses, safety belts, webbing, slings, filtration fabrics and rope, among other end uses. Other benefits of the acquisition include enhanced R&D and technical capabilities, expanded customer service and improved flexibility of sourcing and delivery. The sale also includes associate commercial operations in Hattersheim, Germany.
"We are excited to expand our European business and to add such a talented and capable group to our team," said Alex Carnevale, Vice President and Managing Director for Performance Fibers' European operations, who will lead the combined European business. "In bringing the INVISTA German fiber operations into our European group, our goal will be to give customers the best of both organizations."
"Sun Capital continues to demonstrate its confidence in the strength of the Performance Fibers' management team and its strategy in every region," said Phil Dougall, Managing Director of Sun Capital Partners, Inc. "With each step taken in executing its global growth plans, Performance Fibers becomes an even more dynamic, profitable, global business leader focused on serving the current and future needs of its customers."
Sun European Partners, LLP advised Sun Capital on this transaction. The pending acquisition is still subject to various approvals.
SOURCE: Performance Fibers