Indorama Ventures Public Co. Ltd. (IVL) is acquiring Invista Resins & Fibers GmbH, a maker of high value-added PET, from parent company Invista, to reinforce its intellectual property rights for specialty PET resins globally.
Based in Gersthofen, Germany, the PET business has a combined capacity of 282 kilotonnes per annum (ktpa) and employs 140.
The acquisition complements IVL's 308 million euro ($350 million) takeover of Invista's PET polymer and resin manufacturing facilities in Spartanburg, S.C., and Querétaro, Mexico, in 2011.
Through the acquisition, IVL will own the intellectual property rights of Polyshield PET and Oxyclear Barrier PET, Invista's barrier technology, in all markets globally. The Thai chemical company already holds the licenses in Americas.
The two brands, said Indorama said in a Dec. 20 announcement, are “well-anchored "in oxygen barrier packaging.
The German business has been described by Indorama as a “strong strategic fit” with IVL and its acquisition fits with the Thailand-based company's strategy to grow in both packaging and in industrial fibers segments.
PET packaging with an oxygen barrier is mainly used by the food and beverage industry to protect oxygen-sensitive products, such as juice, wine, beer, dairy as well as ketchup, sauces and other condiments throughout their entire shelf life.
According to IVL, demand for barrier resins is expected to grow at a strong pace, driven by the improved shelf life of packaged food products, increasing health and hygiene concerns and the emergence of new recyclable PET applications in replacement of traditional materials such as glass and aluminum cans.
IVL claims to have a “leading market share” in the North America oxygen barrier PET market.
“This is a very exciting development for IVL. With our strong foundation in the PET market and IVL's geographic reach, we see vast opportunities to grow the Polyshield PET and Oxyclear Barrier PET brands to their full potential,” Indorama CEO Aloke Lohia said on the acquisition.
Already active in the U.S., one of the largest barrier resin markets in the world, this latest acquisition will now create opportunities for IVL's further growth across the globe, he said.
Financial details of the transaction have not been disclosed. The deal is expected to be completed in the first quarter of 2019, subject to regulatory approvals.
Invista's high-performance barrier PET technologies use a highly active scavenger chemistry that contains no nylon or nitrogen, giving the polymer high levels of clarity.