BBA Group, plc, a London-based holding company, has announced details of the proposed demerger/spin-off of its Fiberweb nonwovens business unit and its planned listing as a separate public company, Fiberweb plc, on the London Stock Exchange. The spin-off, expected to be complete November 17, 2006, will be the final result of a process to separate the Fiberweb nonwovens manufacturing unit from BBA's Aviation Services business, as announced last November.
The BBA board believes that the separation provides an opportunity for both Fiberweb and BBA’s Aviation Services business to each pursue both organic growth and strategic expansion in a more focused and dedicated manner as independent entities.
“I am excited about the forthcoming demerger, which will create an independent Fiberweb, a business focused on producing nonwoven materials for use in hygiene and industrial markets,” said Daniel Dayan, chief executive of Fiberweb. “This demerger will allow us to sharpen our focus on our ongoing turnaround program and on building the leading market positions that Fiberweb enjoys today. The newly-constituted Fiberweb board is committed to improving our performance for the benefit of shareholders, customers and employees. We continue to make progress on the restructuring initiatives announced during the last 15 months, which the Fiberweb board believes are crucial in order to improve the underlying profitability of the business.”
In North America, Fiberweb has two divisions operating nine manufacturing sites. The hygiene/medical Americas division is headquartered in Simpsonville, SC while the industrial division is headquartered in Old Hickory, TN.
Fiberweb’s nonwovens sales are $1.1 billion annually. The company is a well known world leader in the design and manufacture of tailored nonwoven fabric solutions with 24 manufacturing sites in 14 countries across the globe.