Indorama Ventures Acquires DuPont Teijin Films Strengthens IVLs High Value-added Product Leadership

Stocks and Financial Services Press Releases Tuesday October 10, 2017 17:50
Bangkok--10 Oct--Indorama Ventures
  • New HVA segment for IVL with attractive growth platform
  • World-class technology and innovation platform and a leading position in diverse industry segments
  • Value creation and synergy potential
  • Enables IVL to offer an even more compelling value proposition for customers
  • Delivers immediate value accretion

Indorama Ventures Public Company Limited (IVL), a global chemical producer, has announced that it has entered into an agreement to acquire DuPont Teijin Films (DTF), a leading global producer of Biaxially-oriented Polyethylene Terephthalate (BOPET) and Polyethylene Naphthalate (PEN) films with total film/polymer capacity of 277,000 tonnes per annum. The DTF acquisition includes 8 production assets in the US, Europe and China, with a global innovation center in the UK. The transaction is expected to be completed during late 2017 or early 2018, subject to the usual regulatory approvals.

DuPont Teijin Films (DTF), a joint venture between DuPont and Teijin Limited, is the world's premier producer of BOPET and PEN polyester high value-added film with unique functionalities. The group specializes in film products for the specialty, industrial, packaging, automotive, advanced magnetic media, photo systems, electrical and electronics markets and many more products that are essential in modern life. DTF is recognized for their market leadership and product innovation, and is constantly inventing and developing new uses for their products.

Included in the transaction are manufacturing and R&D operations associated with four joint ventures in the United States, United Kingdom, Luxembourg, and Hong Kong (DTFC), which includes two JVs in China (51%), as well as sales and technical capabilities, intellectual property, licenses and the Melinex® and Mylar® registered brands.

The global BOPET film industry has expanded rapidly and there are increasing applications and end-uses. The global consumption of BOPET is expected to increase at an average rate of about 7% CAGR per annum making the acquisition attractive. Critical success factors are customer intimacy, product innovation and R&D capabilities, which align well with DTF's core competencies. Through the acquisition, IVL will further enhance PET integration and value-enhancement through captive NDC, a specialty chemical used in high performance polymers and films. IVL is the world's only commercial manufacturer of NDC.

Commenting on the acquisition, Mr. Aloke Lohia, Group CEO of Indorama Ventures, said, "This acquisition marks a new chapter for IVL. It is the next step in creating a leading position for customer solutions in films. DTF provides prudent growth in an industry related to our core businesses and is a strong foundation for future growth. DTF has a strong history of R&D with over 700 patents, which makes it a strategic fit with our own innovation capabilities."

"We believe in diversity as a core value of the Company and we look forward to welcoming DTF's strong management team and talented employees into our family."

Allen & Overy and Lowenstein Sandler LLP are serving as legal advisors to Indorama Ventures. Goldman Sachs & Co. LLC is serving as joint financial advisor to DuPont and Teijin. Eckert Seamans Cherin & Mellott LLC is serving as legal advisor to DuPont. Terralink Advisors Inc. is serving as financial advisor, and Morrison & Foerster LLP is serving as legal advisor to Teijin.

More information is available at www.indoramaventures.com

Latest Press Release

Photo Release: KTC joins EVEANDBOY to celebrate 2019 beauty up to 17% cash back.

"KTC" or Krungthai Card Public Company Limited, by Mr. Sorachach Srilamul, Senior Manager - Credit Card Business, in association with EVEANDBOY, Miss Pluemmanas Panrit, Manager, give special privilege of up to 17% cash back to KTC cardmembers who shop...

Photo Release: Bangkok Bank prepares #Ang Pao envelopes carry the Chinese character #Fu representing #happiness and #luck

Ahead of Chinese New Year, Bangkok Bank has prepared red 'Ang Pao' envelopes depicting auspicious magpies representing good fortune. The envelopes also carry the Chinese character 'Fu' representing 'happiness' and 'luck,' as well as four Chinese words,...

Bangkok Bank reports 2018 net profit of Baht 35,330 million

Thailand's economic growth in 2018 is expected to be 4.1 percent, up from 3.9 percent in 2017. While exports weakened in the second half of the year amid slower world trade and risks from the US trade policies, domestic demand continued to firm up....

TBANK posts fourth consecutive year of earnings growth

Thanachart Bank Public Company Limited generated record earnings of 14,703 million baht in 2018, a 6.5% improvement from last year. Mr. Praphan Anupongongarch, CEO and President of Thanachart Bank Public Company Limited, outlined that "TBank benefited...

TMB unveils TMB Experience

TMB unveils "TMB Experience", new concept branch, offering engaging branch experience that combines digitization with human touch to enable customers to enjoy discovering their real financial needs through 'Avatar' identity creation and exploring...

Related Topics