04 August 2006 21:11 [Source: ICIS news]
By Ed Zwirn
NEW YORK (ICIS news)--Performance Fibers is still looking to grow through acquisitions over the next year or two, moving from just under $700m (€544m) of revenues to over $1bn by 2008, chief executive Greg Rogowski said on Friday.
The Richmond, Virginia-based company, which is affiliated with private equity group Sun Capital Partners, on Tuesday announced that it had acquired Invista Resins & Fibers' German polyester yarn business. Terms were undisclosed.
The acquisition includes three manufacturing facilities - one each in the German cities of Bad Hersfeld, Bobingen and Guben - that produce industrial fibres for sewing thread, technical textiles and other industrial and specialty applications.
“We’re looking at where we can bring value, to grow both internally and externally,” said Rogowski, regarding future acquisition and expansion plans. Key to the company’s strategy, he said, would be purchases of companies and facilities in the auto segment, particularly those essential to tyre manufacturing.
He said that Performance Fibers, which was created in 2004 when Sun purchased it as a business area of Honeywell International, has made over $100m of acquisitions since its founding, including three within the past year.
He foresees 30% of growth coming from internal sources and 70% through further acquisitions.
Rogowski, who headed the Honeywell International performance fibre area prior to its acquisition, noted that his company’s affiliation with Sun Partners means that it can avoid size goals or targets, as well as devising terms and structures, when coming up with ideas for acquisitions.
“It’s great to have a strategic fit,” he said. “But there’s really no small size or large.”
“We don’t start out saying we want something in the $200m range,” he added “Sun’s deal team works with us [and] because they have the deal experience, we don’t have to bring in people to do these things.”
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