Invida Venture Capital Limited (IVL) will acquire its subsidiary Invida Resin and Fiber Company from Invida to enhance its intellectual property rights in the field of special PET resins.
The GESTHOFFEN-based PET company has an annual production capacity of 282,000 tons and 140 employees.
According to the acquisition supplement, IVL will buy INVEDA's PET polymer and resin production facilities in Spartanburg, South Carolina and Cretaro, Mexico, for 308 million euros.
Through this acquisition, IVL will have intellectual property rights in Polyshield PET and Oxyclear Barrier PET in all markets around the world, which is the barrier technology of Invida. The Thai chemical company has been licensed in the Americas.
Indorama said on December 20 that the two brands "have a good positioning in oxygen barrier packaging, such as tomato sauce".
Indorama described the German business as a "strong strategic fit" for IVL, and its acquisition coincided with the Thai company's growth strategy in packaging and industrial fibers.
PET packaging with oxygen barrier is mainly used in food and beverage industry, such as fruit juice, wine, beer, dairy products and condiments such as tomato sauce, sauce and other oxygen-sensitive products, so that it can be protected throughout the shelf life.
IVL said that demand for barrier resins is expected to grow strongly as the shelf life of packaged food prolongs, health and hygiene concerns increase, and new applications of recyclable PET in replacing traditional materials such as glass and aluminium cans.
IVL claims to have a "leading market share" in the North American oxygen-insulated PET market.
"This is a very exciting development for IVL. With our strong foundation in the PET market and the geographical scope of IVL, we have seen great opportunities for the development of Polyshield PET and Oxyclear Barrier PET brands to fully exploit their potential. IVL CEO Aloke Lohia commented.
As one of the largest barrier resin markets in the world, IVL is already very active in the United States. This acquisition will create opportunities for further growth of IVL in the world.
The financial details of the transaction have not yet been disclosed. The deal is expected to be completed in the first quarter of 2019 and is currently pending regulatory approval.
Invida's high performance barrier PET technology uses highly active scavenger chemicals that do not contain polyamide or nitrogen to make polymers with high resolution.