Thai chemicals company Indorama Ventures Public Company Limited (IVL) is acquiring a 65.72% stake in Avgol Industries 1953 LTD., an Israel-listed textiles manufacturer for a sum of $1.62 (€1.35) per share.
IVL announced 13 May that the transaction was expected to be completed during the second half of 2018, subject to regulatory approvals.
Avgol is the 3rd largest manufacturer of nonwovens for hygiene applications in the world, and holds a global market share of 10%.
The Israeli company’s high-performance nonwoven fabrics are used by leading manufacturers of baby diapers, feminine hygiene products and adult incontinence products.
Based in Tel Aviv, Avgol has six production sites globally in Israel, the US, Russia, China and India, with a combined production capacity of 203,000 tonnes/annum, and employing 900 employees worldwide.
This acquisition, said IVL, will strengthen the company’s position in the high-growth personal hygiene oriented nonwovens market.
“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,” said Aloke Lohia group CEO of Indorama Ventures commenting on the deal.
Avgol has already made some significant investments to grow the business by expanding its production capacity and geographical footprint.