Thai company purchases Avgol Industries Print

Thailand-based petrochemical producer Indorama Ventures has agreed to buy a 65.72% stake in Israel’s Avgol Industries for about US$314 million, the companies disclosed recently.

Avgol is a manufacturer of non-wovens for hygiene applications and has a global market share of 10%. Its fabrics are used in diapers and feminine hygiene products. The transaction is expected to be completed during the second half of 2018, subject to regulatory approvals, an Indorama spokesperson said. Indorama Ventures is one of the world’s leading petrochemicals producers, with a global manufacturing footprint across Africa, Asia, Europe and North America.

Commenting on the acquisition, Mr Aloke Lohia, Group CEO of Indorama Ventures, 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 [High Value-Added] 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 highgrowth markets, together with Indorama Ventures’ global presence, will provide a strong opportunity for creating additional value to best serve all our customers.”

(Issue Jun 2018)