Austria-based cellulosic fiber manufacturer Lenzing AG has announced it will sell 85 percent of its shares in Lenzing Plastics GmbH to an Austria-based bidding consortium led by Invest AG, the investment arm of the Raiffeisen Banking Group Upper Austria. The divestment is part of Lenzing Group's strategy to focus on its core fiber manufacturing business, and is valued at nearly eight multiples of the business unit's 2012 earnings before interest, taxes, depreciation and amortization (EBITDA), which totaled 11.8 million euros on sales of 109.4 million euros.
According to Lenzing CEO Peter Untersperger, the group's fiber business represents 90 percent of consolidated sales. "With this change of ownership we will enable the excellent company Lenzing Plastics to grow further and optimally exploit business opportunities under a new and experienced industrial owner," he said.
Lenzing Plastics will continue to operate at the Lenzing site and utilize infrastructure services located there.
"We see outstanding future and development potential in this high-tech Upper Austrian company, and consider Lenzing AG to be an excellent partner to further develop the company," said Heinrich Schaller, CEO, Raiffeisenlandesbank Upper Austria.
Consortium members include Invest AG, Beteiligungsgesellschaft m.b.H. & Co. OG, Tyrol Equity AG, Lenzing Plastics Managing Director Johann Huber and former Lenzing AG Management Board Member Christian Reisinger.
Subject to corporate and regulatory approvals, the sale is expected to close at the end of the second or beginning of the third quarter of 2013.
