Tessenderlo Group takes major step in its transformation into a speciality group
Tessenderlo Group agrees to sell PVC and Chlor-Alkali activities to the European leader Kerling (INEOS ChlorVinyls)
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
Until approval from the European Merger Control authorities is
obtained and after further information & consultation of the
relevant works councils, if not completed yet, Tessenderlo Group
will continue to operate the businesses as normal.
Tessenderlo Group retains an important presence in Belgium, with
its Brussels-based headquarters and activities in Ham, Overpelt,
Oeselgem, Vilvoorde, Leuven, and partly at the Tessenderlo plant,
representing in total more than 1 200 people. Furthermore,
Tessenderlo Group will continue to work with the divested
business, by supplying and buying several raw materials, and
remaining their largest customer, purchasing PVC
for its Plastics Pipe Systems and Profiles activities.
Kerling is one of the major chlor-alkali producers in Europe, a
global leader in chlorine derivatives and Europe's largest PVC
manufacturer. The Company also has leading UK market positions in
sulphur chemicals and salt, along with significant activities in
brine, bio diesel, and chlorinated paraffins.
Tessenderlo Group is an international chemicals company with over
100 locations worldwide. More than 8,000 people work for the
group. The group is a world and European leader in most of its
product areas with a consolidated revenue totaling 2.4 billion
EUR in 2010. Tessenderlo Chemie NV is listed on Eurolist by
Euronext Brussels and is part of Next 150 and BEL Mid indices.
Société Artésienne de Vinyle
Tessenderlo Group
The six operating segments are:
400,000 tons of chlorine in Tessenderlo (Belgium).
550,000 tons of VCM
The affiliate LVM (Limburgse Vinyl Maatschappij) produces VCM in Tessenderlo
480,000 tons of PVC in Beek, The Netherlands and Mazingarbe, France.