India's Kiri closes acquisition of insolvent German DyStar

04 February 2010 17:46  [Source: ICIS news]

TORONTO (ICIS news)--India’s Kiri Dyes and Chemicals has secured financing and closed its acquisition of insolvent Germany-based leather and textile chemicals major DyStar, the latter’s insolvency administrators said on Thursday.

Under the deal, Kiri will take over four of DyStar's five German production sites, securing some 750 jobs in Germany and 2,000 jobs worldwide, the administrators said without disclosing financial terms.

“From where we stand, this [sale to Kiri] is a major success, saving four production sites in Germany with so many jobs given the current difficult economic setting,” the administrators said.

Production at Frankfurt, Leverkusen, Ludwigshafen and Brunsbuttel would resume as quickly as possible, they said.

DyStar filed for insolvency in September and shortly afterwards production, with the exception of indigo at Ludwigshafen, was halted and workers were laid off.

But despite the insolvency, DyStar’s business outside Germany continued and its trading operations still supplied dyes, additives and services, the administrators said.

Kiri managing director Manish Kiri said his firm would continue running DyStar as an independent company while seeking out synergies.

Kiri agreed in December to acquire DyStar but the deal later stalled because of financing difficulties and the administrators started talking to another potential buyer, a chemicals firm from China.

DyStar is one of the largest producers in the global textile chemicals industry, along with firms such as Huntsman and Clariant.

It was formed in 1995 out of the textile dyes businesses of Bayer and former German chemicals major Hoechst. In 2000, BASF integrated its dyes business into DyStar.

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By: Stefan Baumgarten
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