In a move to further concentrate on its core cellulose fibres business for nonwovens and textiles, Lenzing AG is to sell 85% of Lenzing Plastics to an Austrian bidding consortium led by Invest AG, based in Linz.
Lenzing Plastics generated total sales of €109.4 million in 2012, with earnings of €11.2 million and will continue to make use of infrastructure services provided by Lenzing AG, which will maintain a minority interest in the business.
“Our core fibre business currently accounts for 90% of consolidated sales and this change of ownership will enable Lenzing Plastics to optimally exploit business opportunities under a new and experienced industrial owner,” said Lenzing CEO Peter Untersperger.
Invest AG will support Lenzing Plastics with equity capital and contribute its experience in growth financing.
The sale is subject to approval by corporate bodies and anti-trust authorities but expected to close by the third quarter of 2013.