INVISTA: Exploring strategic alternatives for Nylon Fibers Business

To DIPAC members:

The recent announcement from INVISTA (see below) indicates that the Nylon fibers business segment within INVISTA is exploring strategic alternatives which could involve the sale of this business. This would include the INVISTA Canada Kingston fibers operation.

Since the attached announcement from INVISTA is a major development, we have decided to defer the DIPAC Annual General Meeting (AGM) usually held in Spring, until later in the year when more information and answers are hopefully available.

The DIPAC Board will closely monitor the situation and keep you apprised of any significant developments. Thank you for your understanding and feel free to contact any board member for clarity.

DIPAC Board

INVISTA announcement:

HOUSTON (ICIS)–INVISTA plans to explore strategic alternatives for its nylon fibers business and has engaged Barclays as exclusive financial advisor during the exploration process, the US-based manufacturer of chemical intermediates, polymers and fibers said in a statement late on Tuesday.

The nylon fibers business includes:

- INVISTA's fiber-focused portfolio: airbag and industrial fibers
- The CORDURA businesses
- Five supporting global manufacturing locations: Seaford, Delaware and Martinsville, Virginia, both in the US; Kingston, Ontario, Canada; Gloucester, UK; and Qingpu, China

INVISTA believes that there are other companies with a different focus and capabilities that could create greater value with those assets, said CEO Francis Murphy.

If, however, through the process INVISTA finds that other companies do not value the nylon business more highly, it will continue to operate it, Murphy said.

If INVISTA proceeds with a transaction, 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, it said.

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", it said, adding that details of the business and exploration process are confidential.

Regardless of a potential transaction to divest its nylon fibers business, INVISTA will continue to supply its global nylon and propylene value chain customers with intermediates, polymers and specialty chemicals, the company said.