Lenzing AG

M&A Activity • Jan 2, 2002

News Details

Ad-hoc | 2 January 2002 07:45

Lenzing AG english

US subsidiary Lenzing Fibers Corporation Ad-hoc-announcement transmitted by DGAP. The issuer is solely responsible for the content of this announcement. ——————————————————————————– Lenzing AG reacts to difficult market environment and sells majority of its US subsidiary Lenzing Fibers Corporation Lenzing AG has sold the majority stake in Lenzing Fibers Corporation (LFC), its 100%-subsidiary in the USA. The deal was signed on 31 December 2001 with a group of international financial investors and parts of the LFC management. It was agreed not to disclose the purchase price, which also involved financial measures. Since Lenzing wants to maintain its future access to the US nonwovens market, which continues to be attractive, 39% of the LFC shares will remain with Lenzing AG. Under terms of the agreement, Lenzing AG will maintain close ties to its subsidiary with continued R & D, technical, and management support as well as its international marketing partnership. In the past, LFC had to fight hard against the difficult market environment in the USA, which was further aggravated by the events of 11 September and the current US recession. In addition, sales did not improve, as had been expected, after Acordis, the only competitor in the United States, closed its manufacturing operation in Mobile, Alabama. The Board of Management decided to take this step because the further market development in the United States cannot be anticipated with a sufficient degree of certainty. Says Jochen Werz, Spokesman of the Board of Management: “This is a good deal for all parties involved. The new owners will benefit from our sound know-how, and Lenzing AG’s future presence in the USA is also preserved. As a result, we continue to offer our customers access to a reliable local manufacturer of viscose staple fiber in the USA.” end of ad-hoc-announcement (c)DGAP 02.01.2002 ——————————————————————————– WKN: 852927; ISIN: AT0000644505; Index: Listed: Amtlicher Handel in Wien; Amtlicher Handel in Frankfurt und München; Freiverkehr in Berlin 020745 Jän 02