Home / Knowledge / News / Textiles / Alfa's DAK Americas to buy Eastman's PET Business
Alfa's DAK Americas to buy Eastman's PET Business
26
Oct '10
ALFA S.A.B. de C.V. (ALFA), the Mexican industrial company, announced that its subsidiary DAK Americas, LLC has agreed to acquire the integrated PTA and PET business of Eastman Chemical Company (“Eastman”). Total consideration for the transaction is expected to be approximately U.S. $600 million, with the final purchase price subject to working capital adjustments at closing.

The acquisition comprises three integrated petrochemical plants located in South Carolina, U.S.A., with a total annual capacity of 1.275 million tons, one producing PTA and the other two producing PET. The operation also includes the intellectual property of the IntegRex PTA and PET technology, as well as access to the business' wide customer base. Through six months 2010, ALFA estimates the South Carolina site generated sales revenue of U.S. $405 million and EBITDA of U.S. $46 million on a pro-forma basis. The plants employ 415 people.

Commenting on the transaction, Armando Garza Sada, Chairman of the Board of ALFA, said: “This strategic acquisition reinforces our presence in the North American PTA and PET markets, where we supply some of the most important companies in consumer segments such as beverage, food and personal care, which have traditionally been resilient to economic cycles. With this acquisition, we demonstrate once again our commitment to the PTA and PET value chains.”

Alvaro Fernandez, President of ALFA, added: “This acquisition will allow us to continue to grow with our customers and to better serve their needs through an expanded range of assets, products and technologies. Moreover, our 30-year experience operating petrochemical plants will allow us to extract value for us and for our customer base from this operation.”

PTA is a raw material for polyester, in any of its presentations. PET is a derivative of PTA used for the production of plastic bottles and other applications in consumer markets.

The transaction is expected to close during the fourth quarter of this year, and is subject to regulatory approvals by U.S. authorities, and satisfaction of other customary closing conditions.

ALFA is a Mexican company comprising four business groups: Alpek (petrochemicals), Nemak (high tech aluminum auto components), Sigma (refrigerated food) and Alestra (telecommunications). ALFA is the world's leading manufacturer of high-tech aluminum engine heads and blocks.

ALFA S.A.B. de C.V. (ALFA)

Must ReadView All

Textiles | On 19th Jan 2017

Pakistan imposes duty on Indian fine cotton yarn

A provisional countervailing duty ranging from Rs 26.89 to Rs 55.8 a...

Textiles | On 19th Jan 2017

Union Budget: Textile sector expects excise duty revisions

Excise duty on man-made fibres should be reduced to bring it on par...

Union textiles minister Smriti Irani at the inauguration of IIGF in New Delhi with textiles secretary Rashmi Verma and other dignitaries. Courtesy: PIB

Apparel/Garments | On 19th Jan 2017

Ministry to reimburse apparel exporters for state levies

The textile ministry has received a sum of Rs 500 crore from the...

Interviews View All

Sachin Sharma
Gem Enviro Management Pvt Ltd

There are no significant differences between virgin yarn and PET recycled...

Evelyne Cholet
UCMTF

‘France had a reputation of being big in new ideas, but poor in marketing...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Suresh Patel
Sidwin Fabric

Sidwin Fabric is a manufacturer and exporter of polypropylene textiles and ...

Urs Stalder
Sanitized AG

Urs Stalder, CEO, Sanitized AG, talks about the increasing use of hygiene...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH
January 2017

January 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


eNEWS
Insights
Subscribe today and get the latest News update in your mail box.
Advanced Search