Global chemical producer Indorama Ventures Public Company Limited (IVL) has announced that it has completed the acquisition of Israeli nonwoven hygiene fabrics manufacturer Avgol Nonwoven Industries Ltd. (TASE:AVGL). Indorama bought a controlling 66% stake in Avgol from Ethemba and Leumi Partners for NIS 5.88 per share at a company valuation of NIS 1.7 billion. The sellers recorded more than 100% profit.
Indorama Ventures first announced its agreement to acquire Avgol two months ago. The acquisition is well aligned with IVL’s strategy of pursuing accretive growth opportunities in the high value-added hygiene segment.
Avgol is a leading manufacturer of high-performance nonwovens for hygiene applications serving the global baby diaper, adult incontinence and feminine hygiene markets. Avgol offers a comprehensive range of nonwoven fabrics and has broad expertise in developing and manufacturing customized solutions to address consumer requirements. The company has six production sites globally in Israel, the US, Russia, China and India, with a combined production capacity of 203,000 tonnes/annum, and has around 900 employees worldwide.
The acquisition offers extensive value creation and synergy within Indorama Ventures, including growth opportunities in adjacent segments through the strong innovation pipeline. The addition of Avgol reinforces IVL’s existing leading position in this segment. IVL now offers a full suite of personal hygiene-oriented nonwoven products that best serve customer needs.
Group CEO of Indorama Ventures Group CEO Aloke Lohia said, "Avgol is an excellent complement to the IVL’s HVA portfolio, and brings a unique expertise in high-performance nonwoven. Given their distinctive position and strong reputation in the personal hygiene segment, IVL now have significant presence in this high-growth market, and are well-positioned to capture new growth opportunities."
Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2018
© Copyright of Globes Publisher Itonut (1983) Ltd. 2018