11 November 2008 08:55 [Source: ICIS news]
SINGAPORE (ICIS news)--Japanese conglomerate Mitsubishi Rayon said on Tuesday it will buy UK-based Lucite International for $1.6bn (€1.25bn) in cash, confirming an earlier report on the possible acquisition.
The acquisition, which is expected to be completed by end-January 2009, would boost Mitsubishi Rayon’s sales by over yen (Y) 600bn ($6.13bn) and will allow the Japanese company to achieve its targeted Y 1,000bn annual revenue.
“The acquisition of Lucite will give us an unprecedented range of production technologies in the industry, enabling us to adapt more flexibly to raw material trends and better serve our customers,” said Masanao Kambara, president of Mitsubishi Rayon, in a statement.
Lucite was formed from an amalgamation of the acrylics business of ICI and DuPont in 1993 and has been majority owned by private equity investor, Charterhouse Capital Partners LLP.
The proprietary technological expertise from the two companies is expected to lead to improved cost efficiency and contribute to enlarged group revenues and earnings, Kambara added.
“We believe the new combined enterprise will create an opportunity for significant cross learning, productivity and efficiency gains,” said Ian Lambert, chief executive of Lucite.
($1 = €0.78 / $1 = Y 97.84)
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