- ICL's Performance Products segment to sell its Germany-based Rhenoflex footwear business as part of ICL's strategy to focus on its core businesses in agriculture, food and engineered materials -
TEL AVIV, Israel, Dec. 19, 2014 /PRNewswire/ -- ICL (NYSE and TASE: ICL), a global manufacturer of products based on specialty minerals that fulfill essential needs of the world's growing population in the agriculture, processed food and engineered materials markets today announced that its ICL Performance Products segment ("ICL PP") has entered into an agreement to sell its Rhenoflex business unit based in Ludwigshafen, Germany, and in China to Findos Investor, a German-based mid-market financial investor. Rhenoflex is a leading supplier of high-end shoe reinforcement materials and orthopedic parts to leading brands in the global footwear industry. The transaction is expected to close during the first quarter of 2015.
Commenting on the sale, Rainer Gruber, Managing Director of Rhenoflex said, "We are extremely gratified that ICL 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 ICL and Findos, as well as Rhenoflex's dedicated employees."
The sale of the Rhenoflex business unit is part of ICL's 'Next Step Forward' strategy to divest its non-core businesses to focus on its core businesses in the agriculture, food and engineered materials markets and to optimize its positioning in those markets. The products manufactured by Rhenoflex are not based on ICL's core minerals.
Remarking on the sale of Rhenoflex, ICL PP CEO Mark Volmer, added, "ICL 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 ICL's distinctive mineral assets and technologies, and expand its global presence, especially in emerging markets. We trust that Findos will actively support Rhenoflex management's business activities and goals, and we wish the entire Rhenoflex team the best of luck in the future."
ICL is a global manufacturer of products based on specialty minerals that fulfill humanity's essential needs primarily in three markets: agriculture, food and engineered materials. The agricultural products that ICL produces help to feed the world's growing population. The potash and phosphates that it mines and manufactures are used as ingredients in fertilizers and serve as an essential component in the pharmaceutical and food additives industries. The food additives that ICL produces enable people to have greater access to more varied and higher quality food. ICL's water treatment products supply clean water to millions of people, as well as to industry around the world. Other substances, based on bromine and phosphates help to create energy that is more efficient and environmentally friendly, prevent the spread of forest fires and allow the safe and widespread use of a variety of products and materials.
ICL benefits from a broad presence throughout the world and proximity to large markets, including in emerging regions. ICL operates within a strategic framework of sustainability that includes a commitment to the environment, support of communities in which ICL's manufacturing operations are located and where its employees live, and a commitment to all its employees, customers, suppliers and other stakeholders.
ICL is a public company whose shares are dual listed on the New York Stock Exchange and the Tel Aviv Stock Exchange (NYSE and TASE: ICL). The company employs approximately 12,000 people worldwide, and its sales in 2013 totaled US$6.3 billion. For more information, visit the company's website at www.icl-group.com
About ICL Performance Products
ICL Performance Products produces and markets food and pharma additives, specialty grades of phosphoric acid and phosphate salts, P2S5, fire-fighting chemicals, and other products and services. Its production facilities are located in Europe, North and South America, Israel, Australia and China. For more information, please visit www.icl-pp.com.
Forward Looking Statement
This press release contains forward-looking assessments and judgments regarding macro-economic conditions and the Group's markets, and there is no certainty as to whether, when and/or at what rate these projections will materialize. Management's projections are likely to change in light of market fluctuations, especially in ICL's manufacturing locations and target markets. In addition, ICL is likely to be affected by changes in the demand and price environment for its products as well as the cost of shipping and energy, whether caused by actions of governments, manufacturers or consumers. ICL can also be affected by changes in the capital markets, including fluctuations in currency exchange rates, credit availability, interest rates, etc.