Celanese buys Israel's Nilit Plastics for $250m

Michael Levi, photo: Tamar Matsafi

The Migdal Ha'Emek based company will retain ownership of its nylon fibers and nylon polymerization businesses.

US specialty materials company Celanese Corp. (NYSE: CE) has acquired Israeli company's Nilit Plastics’ nylon compounding product portfolio. The acquisition includes customer agreements and manufacturing, technology and commercial facilities but Nilit, controlled by Michael Levi and based in Migdal Ha'Emek, will retain ownership of its nylon fibers and nylon polymerization businesses worldwide, including facilities in Israel, US, China, and Brazil. Financial details of the deal were not disclosed but market sources estimate that Celanese is paying $250 million.

Celanese EVP and president materials solutions Scott Sutton said, “Nylon compounds continue to be a material of choice in automotive, E&E, consumer and industrial applications, and this acquisition delivers on Celanese’s intention to complement its broad portfolio by becoming a leading, global nylon compound supplier."

Nilit Plastics managing director Ilan Melamed said, “The nylon product portfolio of Nilit Plastics is one of the broadest in the market for polyamide compounds. This breadth is matched by the company’s expertise in compounds based on polyamides and an in-depth knowledge of target markets and applications. Nilit Plastics is regarded by the market and its customers as a solution provider with its ability to develop and produce compounds exactly fit for the application. We are pleased to join Nilit Plastics with the Celanese family and bring our world-class products, technology and valued employee base to a global engineered materials leader where both our products and people will continue to grow.”

Celanese expects to integrate Nilit Plastics’ nylon compounding product portfolio and production capabilities into the Celanese engineered materials business.

Nilit Plastics makes compounds based on polyamide 6 and 6,6 (PA6 / PA66) as well as different types of partially aromatic polyamides, including polyphthalamide (PPA). The division is dedicated to high quality specialties and has developed more than 3,000 different formulations in the last 40 years. Many of these compounds have been certified by independent authorities and more than 85 compounds are UL and VDE listed for flammability and electrical performances. Nilit Plastics has compounding production facilities in Europe and China.

The parties expect to complete the transaction in the second quarter of 2017, pending customary closing conditions and regulatory approvals. Until closing, Celanese and Nilit Plastics will continue to operate as independent businesses.

Published by Globes [online], Israel business news - www.globes-online.com - on February 2, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Michael Levi, photo: Tamar Matsafi
Michael Levi, photo: Tamar Matsafi
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