BANGKOK — Global petrochemicals producer Indorama Ventures PCL (IVL) has reached a definitive agreement to acquire Performance Fibers Asia, the Asian business of Performance Fibers.
Financial terms were not disclosed.
Performance Fibers Asia produces tire fabrics in the region and according to IVL operates the second largest production facility of its kind in China. IVL said Asia is the largest and fastest growing market for tires globally.
IVL said the acquisition represents the continuation of its strategy to increase and strengthen its presence in the high value added automotive safety applications. Performance Fibers Asia—combined with two other IVL acquisitions of PHP Fibers and Trevira in the last two years—are projected by IVL to have annual sales of at least $850 million.
The acquisition combines IVL's specialty polymers, fire retardant yarns and airbag yarns business with Performance Fiber Asia's tire fabrics.
“This acquisition is a great strategic fit for IVL,” Aloke Lohia, IVL vice chairman and group CEO, said in a statement. “We are acquiring a company that has an established premier position in the life-critical end-use applications in the tire industry across the world. The company has a proven management team with a track record of value creation.”
Private equity firm Sun Capital will continue to manage Performance Fibers' European and Americas business.