Low & Bonar Group proposed sale of Agro-textiles Business
Sale of BonarAgro
Low & Bonar Group, has announced that it is to sell its agro-textiles business ("BonarAgro") and the industrial-wovens production (both situated in Lokeren, Belgium) to IFG Exelto NV (“IFG”), part of Swedish industrial group Duroc. IFG is a leading worldwide manufacturer of polypropylene, polyethylene, polyamide fibre and filament yarns.
The sale is expected to close no later than 30 September 2017, subject to the fulfilment of certain conditions. As a result, the sale of BonarAgro is not certain to take place. However, we are writing to you now to inform you about the proposed sale and its likely future impact on your relationship with BonarAgro and your ongoing requirements for products to support your business.
Rationale of the sale
The Disposal is in line with Management’s stated aim of improving operating margins in all its global business units. The specialised nature of the BonarAgro business does not represent a strategic fit with Low & Bonar’s core business interests. The agro-textiles business is profitable, has an established market position and an excellent customer base but requires investment to take it through its next stage of development in improving its efficiency and performance. The business has scope to grow with the support of IFG, but is non-core to Low & Bonar’s future strategic aims and will be better served by an independent future and a new owner who will make the investment at its Lokeren facility and continue to drive and develop business growth.
The current period / post sale period
Prior to completion of the sale, all orders will continue to be fulfilled by BonarAgro as normal. You should continue to direct all queries regarding new and existing orders to us; new orders to be placed prior to closing should be sent to us, not to the proposed new owners. Business will continue as normal until such time as the sale closes. At closing, all open orders will be transferred to IFG for fulfilment.
All invoices received from Low & Bonar should be paid to Low & Bonar in the normal way. After the completion of the sale, invoices will come from IFG and will be payable to IFG. Further details will be provided to you at that stage.
Guarantee/warranty obligations for all products sold prior to closing will remain with Low & Bonar. However, we will collaborate with IFG to resolve any claims.
If the sale proceeds, no significant changes are to be expected to the employees currently working in the business.
As soon as we have further information about the status of the sale, we will write to you again. Until such time, our staff is available to answer any questions you might have.