MONTERREY, Mexico -- ALFA, S.A.B. de C.V. (ALFA), the Mexican industrial company, has announced that its subsidiary DAK Americas, LLC has agreed to acquire the U.S. PET business of Wellman, Inc. Total value of this acquisition is approximately U.S. $ 185 million, including a cash payment and assumption of certain liabilities.
The acquisition includes the PET Resin production facilities in Bay St. Louis, Mississippi, U.S.A. The site has a capacity to produce approximately 430,000 tons/year of PET Resin. There are 165 people employed at the site.
Commenting on the transaction, Armando Garza Sada, Chairman of the Board of ALFA, said: "This strategic acquisition reinforces our presence in the PET industry, where we supply some of the most important companies in consumer segments such as beverage, food and personal care. It allows us to demonstrate once again our commitment to the PET value chain."
Alvaro Fernandez, President of ALFA, added: "This transaction permits our subsidiary DAK Americas to increase efficiency, gain additional product flexibility and broaden product range to better serve the needs of our customers."
Polyethylene Terephthalate (PET) Resin is a derivative of Purified Terephtalic Acid (PTA), widely used for the production of carbonated soft drink and water bottles, as well as other food and consumer product packaging applications.
The transaction is expected to close in the second half of this year, and is subject to customary regulatory approvals.
ALFA is a Mexican company comprising four business groups: Alpek (petrochemicals), Nemak (high tech aluminum auto components), Sigma (refrigerated food) and Alestra (telecommunications). ALFA is the world's leading manufacturer of high-tech aluminum engine heads and blocks. It is one of the world's largest producers of PTA, a petrochemical product, and has a leading market share in other petrochemicals in Mexico. In addition, ALFA is Mexico's leading producer of processed meats and cheese and one of the most important telecommunications services companies in Mexico. For 2010, ALFA reported revenues of U.S. $ 10.8 billion, and EBITDA of U.S. $1,260 million. Currently, ALFA has manufacturing operations in 16 countries and employs more than 57,500 people.