INVISTA, an industry leader in the nylon 6,6 and polypropylene value chains, announced its intent to explore strategic alternatives for its nylon fibers business.
This includes INVISTA’s fiber-focused portfolio: airbag and industrial fibers, the CORDURA businesses, and five supporting global manufacturing locations: Seaford, Delaware; Martinsville, Virginia; Kingston, Ontario, Canada; Gloucester, UK; and Qingpu, China.
“Consistent with our Principle Based Management business philosophy, INVISTA continuously assesses the external value of assets to make sure they are owned by the company best positioned to grow the business,” said Francis Murphy, INVISTA President and CEO. “Nylon fibers is a great business, and we believe there are other companies with different focus and capabilities that could create even greater value with those assets. If, however, through this process, we find that other companies don’t value it more highly, we’ll continue to operate the business.”
Regardless of a potential transaction to divest its nylon fibers business, INVISTA will continue supplying its global nylon and propylene value chain customers with intermediates, polymers and specialty chemicals. If INVISTA were to proceed, it would also result in a simplification and strengthened focus on its long-term competitive positions in the upstream nylon and propylene value chain businesses.
The nylon fiber assets are a major part of the current INVISTA footprint, and it would be premature to speculate on the final structure of a potential deal. Details of the business and exploration process are confidential. INVISTA has engaged Barclays as Exclusive Financial Advisor during this exploration process.