Deal includes 950 million pound facility.
DAK Americas will acquire the PET business of Wellman, Inc. Total value of the acquisition is approximately $185 million including a cash payment and the assumption of certain liabilities. The transaction is expected to close in the second half of 2011 pending regulatory approval.
“DAK Americas is extremely excited about the acquisition as it will provide DAK with a state-of-the-art facility and an expanded asset base. The site that will increase efficiencies and provide added product flexibility to better serve the needs of customers in the PET resin marketplace,” said Jorge Young, executive vice president, DAK Americas.
The acquisition includes the PET resin production facilities in Bay St. Louis, MS, which has a production capacity of approximately 950 million lbs/yr (430 Ktons/yr) of PET Resin and a very capable work force of approximately 165 people.
“This will allow DAK to continue to innovate and cost effectively serve ever growing customer needs,” added Tom Sherlock, PET Resins Business Director, and DAK Americas.“The addition of this manufacturing facility will allow DAK to broaden its PET Resin product offerings.
Polyethylene Terephthalate (PET) Resin is widely used for the production of carbonated soft drink and water bottles, as well as other food and consumer product packaging applications.