Clifford Chance has advised Indorama Ventures Public Company Limited, a producer in the intermediate petrochemicals industry and a manufacturer of wool yarns, on the proposed acquisition of Kordarna Plus, a Czech-based industrial textile and tire cord fabrics producer.
The sellers were a group of shareholders led by Jet Investment, a private equity investment company based in Brno, Czech Republic.
According to an Indorama press release, ”the acquisition includes one production site in the Czech Republic and one in Slovakia, with a combined tire cord and technical fabrics production capacity of 50,000 tonnes per annum (tpa).” Kordarna employs 786 employees.
The transaction is expected to be completed during the second half of 2018, subject to regulatory approval.
Commenting on the acquisition, Aloke Lohia, Group CEO of Indorama Ventures, said: “The acquisition of Kordarna is consistent with our proven HVA strategy for growth through accretive acquisitions. Kordarna is one of the most recognized and trusted brands in the tire industry and has huge potential together with our PHP, Performance Fibers, and Glanzstoff businesses to jointly create value for the customers and our stakeholders. By combining our proven capabilities and scale with Kordarna’s long-standing customer relationships, we will create powerful opportunities to sustainably grow with our first billion dollar vertical in HVA.”
Igor Fait, Managing Partner in Jet Investment, added: “The selling of Kordarna to a strategic industrial player is a logical accomplishment of a successful turnaround project on our side. Since we entered Kordarna in 2010, the company has strengthened its position in all aspects of the business and grown internally to be a leading tire cord producer in Europe.”
The Clifford Chance team advising on the transaction was led by Prague Managing Partner Alex Cook, working with Associate Veronika Kinclova. The team also included Associates Jakub Vesely and Dominik Vojta and Junior Associates Zuzana Moravkova, Matej Kucera, and Andrej Havko.
Clifford Chance did not reply to our inquiry on the matter.