Global chemical producer Indorama Ventures Public (IVL) has signed an agreement to purchase Germany-based PET packaging firm Invista Resins & Fibers.
The deal will add Invista’s Gersthofen value-added PET manufacturing facility to Indorama Ventures portfolio as well as supports its strategy to offer differentiated solutions in both packaging and in industrial fibres.
The Gersthofen plant currently has a production capacity of 282,000t annually and employs approximately 140 people.
IVL will also own intellectual property rights for Polyshield Pet and Oxyclear Barrier Petbrands used for oxygen barrier packaging, as well as Invista’s barrier technology across all markets globally.
Indorama Ventures Group CEO Aloke Lohia said: “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, and reach existing and new customers around the world.
“We are already capitalizing on the opportunities in the U.S. market, one of the largest barrier resins markets in the world – through our existing Oxyclear Barrier Pet license in America’s.
“This strategic acquisition will evolve IVL to the next level of success by taking advantage of opportunities in global markets. With this acquisition, we reinforce our commitment to deliver the highest value to our customers and create sustainable long-term value for our shareholders.”
The transaction is currently subject to regulatory approvals and will close in the first quarter of next year.
Following the completion of the transaction, Gersthofen plant will offer new opportunities in several new markets and attractive segments for IVL by leverage HVA polymer business of the company.
Indorama Ventures offers a range of products across necessities and high value-added (HVA) categories of polymers, fibers, and packaging serving a range of major FMCG sectors such as beverages, hygiene, and personal care.
It currently employs around 16,000 employees globally across Africa, Asia, Europe and Americas.