DTI/Koch Industries Update
Wichita, KS, Aug. 11--As reported yesterday on Floordaily.net, DuPont has announced that Koch Industries and its subsidiaries are in exclusive negotiations to acquire DuPont Textiles and Interiors, the world’s largest integrated fibers and resins company, with familiar brand names such as Stainmaster and Lycra.
Koch believes acquiring the DTI businesses would complement the polyester businesses of Koch company KoSa B.V. and its subsidiaries, which are global leaders in polyester production. By combining KoSa's capabilities with DTI's strong brands and leadership positions in nylon and spandex, the acquisition would create a diversified and integrated company well-positioned to compete in global fibers and resins markets.
The acquisition would also be a fit with the capabilities Koch has built over 60 years of managing successful businesses, including experience in manufacturing businesses and other asset operations, as well as trading and risk management expertise.
Koch sees great potential value with this possible acquisition:
·DTI is highly innovative and customer-focused, with outstanding research and development capabilities, a superb branding capability, and very capable commercial leaders.
·Koch's private status positions it to weather the cycles of the manmade fibers and resins business and respond quickly to market developments and to create superior value for customers.
·Koch has a great deal of experience in businesses that are cyclical, highly competitive and becoming more mature, and combining the capabilities of DTI and KoSa would give the new company the scale and resources to effectively compete in these global markets.
·DTI has well-placed assets, strong manufacturing and marketing relationships, and high-quality resources in the growing markets of Asia.
·The new company would be one of the key suppliers to DuPont, one of the world's leading industrial companies.
·There are expansion and new investment opportunities within and related to these businesses, to build on some of the most recognized and consumer-appreciated brands in the world.
The execution of a definitive agreement to purchase DTI is still subject to the completion of ongoing due diligence reviews and board approvals. The definitive agreement, once signed, would be conditioned on regulatory approvals.
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