Koch Industries subsidiaries to purchase Invista5 December 2003
Koch Industries have announced that their subsidiaries have reached a definitive agreement with DuPont to purchase Invista, formerly DuPont Textiles & Interiors, for $4.4 billion in cash. The two subsidiaries are KED Fiber Ltd and KED Fiber LLC. Closing is expected in the first half of 2004, subject to regulatory approvals and customary closing conditions. The purchase will include all of Invista's businesses, including apparel, interiors and industrial, and intermediates. In addition, it includes Invista's extensive portfolio of trademarks and brands, including Lycra, as well as over 8,000 patents and significant proprietary intellectual property. Koch will integrate their KoSa business and its subsidiaries, global manufacturers of commodities and specialty polyester products, into Invista. 'This acquisition is an excellent fit with our capabilities and vision for long-term growth', said Charles G Koch, chairman and chief executive officer of Koch Industries. 'By combining Invista's many capabilities and strong brands, primarily in nylon and elasthane, with the polyester businesses of our KoSa subsidiaries, we will create a diverse company, well-positioned to compete in the global fibres and resins markets, long term.' 'We are proud to carry with us the heritage we gained at DuPont and thrilled to be headed toward a new company that has proven competitive capabilities, sees growth opportunities in our businesses, and does not feel bounded by current industries or product lines', said Steve McCracken, president and chief executive of Invista. 'While being part of a different and privately held company will be a significant change for us, it will certainly offer opportunities to improve our focus on long-term success and more stability in weathering business cycles.' McCracken added: 'It should also provide the scale and scope of resources we'll need to more effectively compete in the challenging branded and commodity markets we serve globally. Together with KoSa, we look forward to creating a renewed superior value offering for our customers.' The new company will be an independent subsidiary of Koch Industries, managed by its own board of directors. * During Lineapelle in October, Jeroen Jacobs, global market manager for Teflon Leather Protector, spoke to Leather International about the current situation with the Teflon brand. 'Teflon will remain split between DuPont and Invista' said Jacobs. 'Invista will do the marketing and promotion and DuPont will be responsible for everything else ie customer service, delivery, research and development etc. And once the sale of Invista to Koch Industries has been completed, the relationship will remain the same. Teflon in leather has been in existence for around a year and a half', continued Jacobs, 'and now that it is fully established, we are beginning to work with tanneries such as Mastrotto in Italy to develop the product further.' Leather International also spoke with Joy Sydein, marketing and communications manager, Europe, for Invista's Home & Industrial Textiles division, who explained: 'Invista is the spin-off of DuPont Textiles & Interiors and took with it all of DuPont's textile brands. Invista have the exclusive rights for both Teflon and fabric leather protectors, but because of the Teflon Fluoroproducts department in DuPont (cooking utensils etc), the brand was not part of the package but licensed only for the end-use marketing with respect to its use in textiles.'