Advansa to sell PET, PTA & Preform Bu to LSB

29 Jul '06

3 min read

H. Ö. Sabanci Holding's subsidiary Advansa BV (Advansa) chaired by Engin Tuncay and La Seda de Barcelona, S.A. (LSB) chaired by Rafael Espanol have signed a Share Sale and Purchase Agreement which will result in the acquisition by LSB of the PET, PTA and Preform businesses currently operating in the UK, Turkey and Romania within Advansa. Completion is subject to necessary regulatory approvals and is expected to take place by 1st October 2006.

The acquisition of Advansa's PET plants in UK and Turkey with combined capacity of 280 kte will result in LSB increasing its total PET capacity to around 800 kte per annum and becoming the largest producer in the European region with the broadest market coverage. It will also enhance LSB's backward integration by adding 670 kte of PTA capacity in Wilton UK to its existing position in MEG production in Tarragona, Spain.

PET remains an exciting opportunity for growth but requires appropriate strategic development to remain successful. In this competitive global market, the challenge for all producers has been to deliver sustainable returns for their shareholders. The agreement brings together two well established and committed Polyester companies and creates a clear market leader with strong capability, knowledge and market coverage.

This acquisition will further strengthen LSB's cost position with the addition of PTA into its portfolio as well as extending its value chain participation. LSB remains committed to maintaining the strong external PTA sales positions, which have been developed by Advansa.

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