Argentina's Vitopel buys rival BOPP maker Votocel of Brazil

14 July 2005 21:35  [Source: ICIS news]

SAO PAULO (CNI)--Argentine biaxially oriented polypropylene (BOPP) producer Vitopel has bought rival BOPP producer Votocel for $120m (Euro99m), it was disclosed Thursday.

 

Votocel is the largest BOPP producer in Brazil with a capacity of 65,000 tonnes/year. Industrial conglomerate Votorantim said it sold Votocel in order to focus on other businesses.

 

With the acquisition, Vitopel will become the largest BOPP producer in Latin America and the fifth largest producer in the world with a capacity of 127,500 tonnes/year.

 

Vitopel has a 36,500 tonne/year plant in Santo Andre, Sao Paulo and a 27,000 tonne/year plant in Cordoba, Argentina.

 

Demand for BOPP has been growing an average 15%/year in Brazil. Likewise, international demand has been strong.

 

According to market estimates, 40% of Brazil's BOPP production is exported and 60% is sold domestically.

 

The sale is expected to be completed by 1 August and will be subject to approval by anti-trust authorities.

 

Vitopel is owned by private equity funds managed by JP Morgan Chase Equity Partners and DLJ/Credit Suisse, which purchased Vitopel from Arcor Partners in August 2000 for $87m.

 

Vitopel is one of the few private equity investments in the chemicals sector in Latin America.


By: Elizabeth Johnson
+1 713 525 2653



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