Tessenderlo Group to Sell PVC and Chlor-Alkali Activities to Kerling
Kerling, through its INEOS ChlorVinyls business, will become the new owner of Tessenderlo Group’s PVC activities, including VCM, Chlor-Alkali as well as part of Organic Chlorine Derivatives.
6/14/2011 --- On June 14th, 2011, Tessenderlo Group and Kerling, a privately held UK-based company, signed a sale and purchase agreement. Kerling, through its INEOS ChlorVinyls business, will become the new owner of Tessenderlo Group’s PVC activities, including VCM, Chlor-Alkali as well as part of Organic Chlorine Derivatives. Besides the major plant at Tessenderlo in Belgium, the production plants in France (Mazingarbe) and the Netherlands (Beek and Maastricht) are involved. These businesses employ about 850 people. This transaction is subject to European merger control approval.
Frank Coenen, CEO of Tessenderlo Group, emphasised that INEOS ChlorVinyls will be an excellent owner of these activities: “In light of our announced strategy - focusing on specialities - we looked for a long time for the right home for these businesses. Our well-invested assets together with our highly competent workforce are both strengths that were recognized by INEOS ChlorVinyls. As a European leader, INEOS ChlorVinyls is well placed to offer these businesses the best possible growth opportunities.”
Chris Tane, CEO of Kerling, stated: “The Tessenderlo Group business and assets are high quality and supported by an organisation which has shown ability to manage its business through a very difficult period in our industry. I believe they will be a strong addition to our existing organisation and businesses and will underpin our further profitable growth.”
The purchase price is 110 million euro on a cash-free, debt-free basis. Through the net debt reduction obtained, the group balance sheet will be further reinforced despite Tessenderlo Group taking a one-time non-cash charge of approximately 158 million EUR related to this transaction.
Following this transaction, Tessenderlo Group will have completed its exit from commodities, and taken the major step in its transformation into a speciality group which provides solutions for global megatrends by:
• food and agriculture from its Tessenderlo Kerley and Sulphate businesses
• valorising bio-residuals through its Akiolis and Gelatin businesses
• ensuring water management through its Plastics Pipe Systems and water treatment businesses