Israel Chemicals Ltd. (NYSE: ICL; TASE: ICL) Performance Products segment has agreed to sell its Germany-based Rhenoflex footwear business. The sale is part of the company's "Next Step Forward" strategy, led by president and CEO Stefan Borgas, of focusing on its core businesses in agriculture, food and engineered materials.
Israel has entered into an agreement to sell the Rhenoflex business unit based in Ludwigshafen and in China to Findos Investor, a German-based mid-market financial investor. Rhenoflex provides high-end shoe reinforcement materials and orthopedic parts to leading brands in the global footwear industry. No financial details about the deal, which will close during the first quarter of 2015, were disclosed, however, market sources believe it was for several tens of millions of dollars.
Rhenoflex managing director Rainer Gruber said, "We are extremely gratified that Israel Chemicals has found a suitable purchaser for Rhenoflex who will empower our existing management team to continue Rhenoflex's successful growth strategy. We look forward to building on Rhenoflex's existing reputation as a technology front-runner and innovator in our industry, as well as a market leader with unparalleled products and service capabilities for the footwear industry. This is an opportune transaction for Israel Chemicals and Findos, as well as Rhenoflex's dedicated employees."
Israel Chemicals Performance Products CEO Mark Volmer said, "Israel Chemicals will use the proceeds from the sale of Rhenoflex, as well as from the divestment of additional non-core assets, to strengthen its core businesses, pursue operational excellence, build out Israel Chemicals distinctive mineral assets and technologies, and expand its global presence, especially in emerging markets."
Published by Globes [online], Israel business news - www.globes-online.com - on December 21, 2014
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