18 April 2013 11:03 [Source: ICIS news]
LONDON (ICIS)--Lenzing has agreed the sale of an 85% stake in its plastics business Lenzing Plastics for about €88m ($114m), the Austrian cellulosic fibres firm said late on Wednesday.
The sale is being made to an Austrian bidding consortium led by Invest AG – the investment company of Raiffeisen Banking Group Upper Austria, based in Linz – at a 2012 earnings before interest, tax, depreciation and amortisation (EBITDA) multiple of about eight times, Lenzing said.
Lenzing Plastics’ EBITDA in 2012 was €11.2m on sales of €109.4m.
“For strategic reasons Lenzing aims to increasingly focus on its core fibre business, which currently already accounts for 90% of consolidated sales,” said CEO Peter Untersperger.
Lenzing Plastics’ production operations are located at the Lenzing site in Austria, and it will continue to make use of infrastructure services of Lenzing AG, Lenzing said.
The Lenzing Plastics business unit makes thermoplastic films and tapes, polytetrafluoroethylene (PTFE) and acrylic fibres.
($1 = €0.77)
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