A nonwoven fabrics specialist headquartered in the UK has agreed to sell its Brazilian subsidiary in a bid to reduce group debt.
A nonwoven fabrics specialist headquartered in the UK has agreed to sell its Brazilian subsidiary in a bid to reduce group debt.
The sale of Fiberweb Bidim Industria e Comercio de Näo-Tecidos Ltda (Bidim) to Mexichem subsidiary Mexichem SAB de CV, is expected to go through for up to £16.6 million, netting Fiberweb plc a gain of £2.5 million after tax and transaction costs. The transaction is expected to be earnings neutral within the year.
The disposal is part of Fiberweb’s ongoing programme of business simplification, says Daniel Dayan, CEO of Fiberweb, confirming that the move will enable the business to focus on strengthening its core hygiene and speciality industrial operations.
“Under Fiberweb’s ownership Bidim has been developed into an excellent business, which has grown sales and profits in recent years,” he adds. “We are pleased to be able to transfer ownership to a company with a significant footprint in adjacent markets which will continue to build on the achievements to date.”
Bidim manufactures standard polyester nonwoven fabrics predominantly for use in geotextile, roofing and footwear markets from its manufacturing site near São Paulo. Last year, Bidim had gross assets of £16.6 million, and posted pre-tax profit of £1.3 million.
