Fiberweb has sold its 15% interest in Saudi German Nonwoven Products Company to its fellow shareholders, Zamil Group Holding Company and Al-Rajhi House Enterprises for a cash consideration of $7.28 million. Prior to completion of the transaction, Fiberweb also received a special dividend of $1.72 million.
The combined proceeds, net of an estimated $1.36 million of associated tax, will be used to reduce group debt.
SGN manufactures nonwoven materials predominantly for hygiene applications from its manufacturing site at Al-Khobar, Saudi Arabia.
"Fiberweb has enjoyed a long and successful relationship with its Saudi partners in the development of SGN,” said CEO Daniel Dayan. “However, as we review our portfolio and investment options, we are focusing our efforts on ventures where we have a significant interest or control. The sale of our 15% interest in SGN is a positive step and, as with the proposed sale of Bidim, which we announced on April 30, is in line with our ongoing program of business simplification and focus on core hygiene and speciality industrial businesses."