Indorama buys controlling stake in Israeli co Avgol

Avgol Photo: Eyal Izhar

Thai-based Indorama is acquiring a 65.72% stake in Avgol, the world's third largest manufacturer of nonwovens for hygiene applications, at a company valuation of NIS 1.7 billion.

Thai-based chemicals producer Indorama Ventures Public Company Ltd. (IVL) has announced that it is acquiring a 65.72% stake in Israeli company Avgol Nonwoven Industries Ltd. (TASE:AVGL) for $1.62 (NIS 5.78) per share. Avgol has 900 employees in six production sites worldwide in Israel, the US, Russia, China and India, with a combined production capacity of 203,000 tonnes/annum.

Indorama will buy the 65.72% stake from Avgol's two main shareholders, UK-based private equity firm Ethemba Capital and Leumi Partners.

Avgol is the world's third largest manufacturer of nonwovens for hygiene applications with a global market share of 10%. Avgol’s high-performance nonwoven fabrics are used by leading manufacturers of baby diapers, feminine hygiene products and adult incontinence products. Avgol also offers advanced solutions leveraging its proprietary technology such as AVSPUN and AVSOFT hydro-entangled spun laid fabrics, which address consumer requirements, including that of thinner, more discrete, softness, and higher performance products.

Indorama Ventures sees the acquisition as an opportunity to strengthen its position in the high-growth personal hygiene oriented nonwovens market. Avgol offers IVL further diversification of its High value-added (HVA) portfolio. The acquisition will allow both companies to provide customers with a comprehensive range of products.

Indorama Ventures Group CEO Aloke Lohia said, “We are excited by the unique opportunity to bring Avgol into the Indorama Ventures family as it is a major step into expanding our HVA portfolio. With this acquisition, we are adding a company that has a distinctive position within a compelling segment and with strong growth prospects. Avgol has already made some significant investments to grow the business by expanding its production capacity and geographical footprint and we hope to capture the benefits and help the company reach further heights. Avgol’s established client base, complementary capabilities and substantial presence in high-growth markets, together with Indorama Ventures’ global presence, will provide a strong opportunity for creating additional value to best serve all our customers.”

Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2018

© Copyright of Globes Publisher Itonut (1983) Ltd. 2018

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Avgol Photo: Eyal Izhar
Avgol Photo: Eyal Izhar
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