Highsun Group Holdings Ltd. announces the acquisition of Fibrant

17 may 2018|News

ChemicaInvest and Highsun Group have today signed an agreement for Highsun Group to acquire Fibrant. ChemicaInvest, a joint venture between CVC Capital Partners and Royal DSM, is the current owner of Fibrant. The agreement covers all the shares in Fibrant BV, the caprolactam plant in Geleen (the Netherlands) and 60% of the shares in Fibrant Co. Ltd., the caprolactam plant in Nanjing (China). The intended acquisition is expected to be completed in the third quarter of 2018, subject to customary regulatory approvals. The agreement is also subject to completion of the consultation process with the Fibrant works council.

The main points of the transaction are:

  • Highsun Group intends to acquire Fibrant BV and 60% of Fibrant Co. Ltd. The remaining 40% of Fibrant Co. Ltd. is to be retained by the existing owner of those shares.
  • The selling party is Fibrant Holding BV. Via Chemicalnvest, CVC holds 65% of the shares of Fibrant Holding BV and DSM 35%. 
  • The transaction includes the plants in Geleen (the Netherlands) and Nanjing (China) as well as their employees. In addition to the subsidiaries Fibrant BV and Fibrant Co. Ltd., their participating interests in other companies are also included within the transaction, such as Fibrant BV’s minority interest in Sitech, a technical service provider in Geleen (the Netherlands). Fibrant LLC (USA) is excluded.
  • The existing management of Fibrant will remain unchanged.
  • All employees of Fibrant form part of the transaction, with the exception of the employees of Fibrant LLC (USA). 
  • Closing is expected in Q3 2018.

Pol Deturck, CEO of Fibrant, commented: ‘Becoming part of a large and integrated international player will allow Fibrant to remain successful in the long term. A careful process preceded the envisaged acquisition. Fibrant joining the Highsun Group, a leading producer of caprolactam and nylon, will benefit our customers, our suppliers and our employees and will create value for the shareholders.’

Chen Jianlong, Chairman of Highsun Group, added: ‘Through this planned acquisition, we will realise a new step in our ambition to become a leading player in the nylon 6 value chain. Fibrant’s reputation for product quality, global service and sustainable technology will make an important contribution to that.’ 

About Highsun Group

Highsun Group Holdings Ltd. is registered in Fuzhou, the capital of Fujian province in Southeast China. With over 5,000 employees and 3,000 business partners, the Group is active in the chemical industry, synthetic fibres and real estate.  The Group is the first in the chemical and synthetic fibre industry to fully integrate 8 value chains from the upstream anone production to the downstream dyeing operations.  The Highsun Group operates the largest global caprolactam production facility with an annual output of 400,000 metric tonnes.  More about Highsun Group at: www.highsunchina.com.

About CVC Capital Partners                                          

CVC Capital Partners is a leading private equity and investment advisory firm. Founded in 1981, CVC today has a network of 23 offices and approximately 400 employees throughout Europe, Asia and the U.S. To date, CVC has secured commitments of over $107 billion from some of the world's leading institutional investors across its private equity and credit strategies. In total, CVC currently manages over $65 billion of assets. Today, funds managed or advised by CVC are invested in 50 companies worldwide, employing circa 310,000 people in numerous countries. Together, these companies have combined annual sales of over $70 billion. For further information about CVC please visit: www.cvc.com.

About DSM – Bright Science. Brighter Living.™

Royal DSM is a global science-based company active in health, nutrition and materials. By connecting its unique competences in life sciences and materials sciences DSM is driving economic prosperity, environmental progress and social advances to create sustainable value for all stakeholders simultaneously. DSM delivers innovative solutions that nourish, protect and improve performance in global markets such as food and dietary supplements, personal care, feed, medical devices, automotive, paints, electrical and electronics, life protection, alternative energy and bio-based materials. DSM and its associated companies deliver annual net sales of about €10 billion with approximately 25,000 employees. The company is listed on Euronext Amsterdam. More information can be found at www.dsm.com.

About Fibrant

Fibrant is a global producer and supplier of high-quality caprolactam, ammonium sulphate and related products and technological services. The head office is located in Urmond, the Netherlands, and the company has 900 employees. Fibrant has production locations in Geleen (the Netherlands) and Nanjing (China). Fibrant has been owned since 2015 by ChemicaInvest, a joint venture of CVC Capital Partners and DSM. See also www.fibrant52.com.