Tessenderlo Sells PVC and Chlor-Alkali Activities to Kerling
Tessenderlo Group and Kerling, a privately held UK-based company, signed a sale and purchase agreement. Kerling, through its Ineos ChlorVinyls business, will become the new owner of Tessenderlo Group’s PVC activities, including VCM, Chlor-Alkali as well as part of Organic Chlorine Derivatives. Besides the major plant at Tessenderlo in Belgium, the production plants in France (Mazingarbe) and the Netherlands (Beek and Maastricht) are involved. These businesses employ about 850 people. This transaction is subject to European merger control approval.
The purchase price is EUR 110 million on a cash-free, debt-free basis. Through the net debt reduction obtained, the group balance sheet will be further reinforced despite Tessenderlo Group taking a one-time non-cash charge of approximately EUR 158 million related to this transaction.
Following this transaction, Tessenderlo Group will have completed its exit from commodities, and taken the major step in its transformation into a speciality group.
Until approval from the European Merger Control authorities is obtained and after further information & consultation of the relevant works councils, if not completed yet, Tessenderlo Group will continue to operate the businesses as normal.
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