Performance Fibers Signs Agreement to Purchase North America Tire Cord and Polyester Industrial Filament Assets from INVISTA
Acquisition Would Expand Portfolio with Industrial Polyester Sewing Thread Fiber and Nylon 6 Fibers and Fabrics
RICHMOND, Va. – An affiliate of Performance Fibers Holdings, Inc. (“Performance Fibers”) announced that it has signed a definitive agreement to acquire the North America tire cord and polyester industrial filament businesses of INVISTA S.á r. l. and its affiliates (“INVISTA”). Included in the sale are manufacturing facilities in Salisbury, N.C., Shelby, N.C. and Winnsboro, S.C.; as well as industrial polyester, industrial nylon 6, and tire cord fabric-producing assets currently operating inside INVISTA’s Querétaro, Mexico site. The purchase agreement was signed on Nov. 30, 2007. Terms of the agreement were not disclosed.
Affected operations include the manufacturing of industrial polyester and nylon 6 fibers for use in a wide range of end uses such as tires, power transmission and conveyor belts, sewing thread, auto safety, rope, cordage, netting and fabrics for tires. INVISTA Querétaro’s PET Resin business and its contract manufacturing operations for fine denier staple are not included in the agreement.
Many of the products to be acquired are complementary with Performance Fibers’ offerings of high-tenacity polyester used in a wide range of segments including energy, environment, architectural design, transportation, lifestyles and leisure, safety and security, and specialty. The purchase would expand Performance Fibers’ core polyester offerings with additional industrial polyester sewing thread fibers, and add nylon 6 fibers and fabrics.
“This planned acquisition will enable us to offer a broader range of fibers and fabrics in the Americas and provide customers in this region with a local supply source, while strengthening our global product portfolio and enhancing our research and development capabilities,” said Greg Rogowski, president and chief executive officer of Performance Fibers. “It is consistent with our strategic growth plan to focus on key segments and emphasizes our ongoing commitment to business in North America.”
"Since Performance Fibers became an affiliate of Sun Capital Partners in 2004, we have worked closely with the management team to aggressively expand the business through strategic acquisitions and investments,” said Kevin Feinblum, Principal, Sun Capital Partners, Inc. “This acquisition reflects Sun Capital’s continuing commitment to grow Performance Fibers’ business in North America, Asia and Europe, and enhances the company’s ability to compete in the global marketplace.”
Performance Fibers, an affiliate of Sun Capital Partners, Inc., acquired INVISTA Resins and Fibers GmbH’s German polyester yarn business in August 2006. The sale included manufacturing facilities in Bad Hersfeld, Bobingen, and Guben, Germany.
Following the planned acquisition, which is expected to be finalized in the next several months, Performance Fibers will employ over 4,000 worldwide.