IVL Inks 9th Acquisition in Brazilian Fiber Business, Aiming for FTA with Latin America

Indorama Ventures Public Company Limited (IVL) has made an announcement that it has, through its indirect subsidiary Indorama Ventures Brazil Participações S.A. (IVBRZ), signed a definitive Sale and Purchase Agreement on November 1, 2018 with M&G Fibras Holding S.A., M&G Fibras Participações Ltda., and M&G Fibras e Resinas Ltda. to acquire a 100% stake in M&G Fibras Brasil Ltda. located in Cabo de Santo Agostinho, Brazil. The transaction is expected to be completed within Q4/2018.

 

The site produces Polyester Staple Fiber, with an annual capacity of 75,000 tonnes and will be in close proximity to IVL’s PET plant in Brazil. This acquisition will provide an opportunity to IVL to establish its global Footprint in the Fibers business in South America’s largest economy, Brazil and participate not only in the large domestic market but also enjoy strategic and logistic advantages from established free trade agreements with other Latin America countries. The demand in Brazil is expected to grow in response to a recent recovery in consumption.

 

The acquisition of Fiber business in Brazil is the 9th acquisition of IVL in 2018 after:

8th Acquisition – IVL, through its indirect subsidiary, Glanzstoff Management GmbH, entered into a definitive Sale and Purchase Agreement with Schoeller Immobilien- und Beteiligungs GmbH and Schoeller Management GmbH on September 28th, 2018 to acquire 100% Equity stake of Schoeller Group in Europe, with operating plants in Austria, Czech Republic, and Germany.

7th Acquisition – Indorama Ventures Public Company Limited signed a definitive Share Purchase Agreement on July 30th, 2018 with Aeromaritime Systems Group B.V. for the acquisition of 100% of the share capital of Sorepla Technologie S.A. and its subsidiary, namely Société de Recyclage de Matières Plastiques (Sorepla Industrie) S.A., in France (“Sorepla”) through its indirect subsidiary, Wellman International Limited.

6th Acquisition – Indorama Netherlands B.V. (INBV), an indirect subsidiary, signed a Share Purchase Agreement on July 18th, 2018 with Middle East Glass S.A.E. and Mohamed Hassan Samaha for the acquisition of 74% of the share capital of Medco Plast for Packing and Packaging Systems S.A.E., Egypt (“MEDCO”).

5th Acquisition – Indorama Ventures Spain S.L. (“IVSSL”) entered into a definitive Sale and Purchase Agreement with PROXY – FINANCE a.s., PROSPERITA holding a.s. and Ing. IGOR FAIT on June 28th, 2018 to acquire 100% Equity stake in KORDÁRNA Plus a.s. in the Czech Republic (referred to as “Kordarna”).

4th Acquisition – Auriga Polymers Inc., USA (“Auriga”), an indirect subsidiary, has entered a joint venture Agreement with Huvis Global Corporation, South Korea on June 18, 2018 to form a 50:50 joint venture limited liability company in USA, by the name of Huvis Indorama Advanced Materials, LLC. (“HIAM”).

3rd Acquisition – Indorama Netherlands B.V. (“INBV”) entered a joint venture agreement with Dhunseri Petrochem Limited (“Dhunseri”), India to acquire the PET facility of Egyptian Indian Polyester Company S.A.E. (“EIPET”) in Egypt.

2nd Acquisition – Indorama Ventures Spain S.L. (“IVSSL”) acquired an Equity stake of 65.72% in Avgol Industries 1953 Ltd., a listed entity on the Tel Aviv Stock Exchange (TASE), Israel (the “Transaction”).

1st Acquisition – Indorama Ventures Spain S.L. (“IVSSL”) signed a definitive Securities Purchase Agreement on March 15th, 2018 with M&G Chemicals Brazil S.A. to acquire a 100% stake in M&G Polimeros Brazil S.A. in Ipojuca, Brazil. The plant is the largest PET facility in Brazil with a capacity of 550,000 tons per annum. This plant is strategically located and benefits from a virtual integration with its key feedstock supplier of Purified Terephthalic Acid (PTA).