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DuPont, Koch Subsidiaries Agree On Sale of INVISTA Fibers Unit

Published on 2003-11-24. Author : SpecialChem

 

DuPont and Koch Industries, Inc. announced they have reached a definitive agreement to sell INVISTA, formerly DuPont Textiles & Interiors, to subsidiaries of Koch for USD 4.4 billion in cash. The two subsidiaries are KED Fiber Ltd. and KED Fiber, LLC.
Closing is expected in the first half of 2004, subject to government approvals. The transaction is expected to be neutral to accretive to DuPont earnings in 2004.

"This is a major milestone in the ongoing transformation of DuPont," said DuPont Chairman and CEO Chad Holliday. "The fibers businesses have been an important part of DuPont for many decades. However, marketplace realities dictate they can best realize their potential as part of a company like Koch which is fully committed to INVISTA and the markets it serves. We believe this outcome will provide the best opportunity for the people who have made these businesses successful in the past and will take them into the future."

"This acquisition is an excellent fit with our capabilities and vision for long-term growth," said Charles G. Koch, chairman and chief executive officer of Koch Industries. "By combining INVISTA's many capabilities and strong brands, primarily in nylon and spandex, with the polyester businesses of our KoSa subsidiaries, we will create a diverse company, well-positioned to compete in the global fibers and resins markets."

"Now that one of the most significant changes in our 201-year history is moving toward completion, we can focus on positioning DuPont for growth," Chad said. "This will involve dedicated, unwavering effort by all DuPont employees. We have talented people, know-how across markets and industries, and the strong science capability necessary for success. Our goal is to channel those capabilities into opportunities for our company, both near- and long-term."

Chad said DuPont shortly will outline actions it will take to ensure competitiveness in global markets and achieve its growth objectives.

INVISTA is reported to be the largest integrated fiber and intermediates business in the world, with 2002 revenues of $6.3 billion, 18,000 employees and interests in 50 global manufacturing sites. The business's products for coatings include amines for polyamide powder coatings, waterborne polyurethane systems and epoxy coatings; crosslinkers for epoxy coatings; antifouling additives for marine coatings; curing agents; and other specialty additives.

Koch Industries, a privately owned company headquartered in Wichita, KS, operates a diverse group of businesses engaged in trading, investments and operations in more than 30 countries. Koch companies are involved in petroleum, asphalt, natural gas, gas liquids, chemicals, plastics and fibers, minerals, and other markets.

Source: DuPont


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