Koch Industries Subsidiaries To Purchase Invista

Furniture World News

Koch Industries, Inc. announced that its subsidiaries have reached a definitive agreement with DuPont to purchase INVISTA, formerly DuPont Textiles & Interiors, for $4.4 billion in cash. The two subsidiaries are KED Fiber Ltd. and KED Fiber, LLC. Closing is expected in the first half of 2004, subject to regulatory approvals and customary closing conditions. The purchase will include all of INVISTA’s businesses, including Apparel, Interiors and Industrial, and Intermediates. In addition, it includes INVISTA’s extensive portfolio of trademarks and brands including: Lycra®, Stainmaster®, Coolmax®, Thermolite®, Cordura®, Supplex®, Tactel®, Antron®, DBE®, and C12®, to name a few, as well as over 8,000 patents and significant proprietary intellectual property. Koch will integrate its KoSa business and its subsidiaries, global manufacturers of commodities and specialty polyester products, into INVISTA. “This acquisition is an excellent fit with our capabilities and vision for long-term growth,” said Charles G. Koch, chairman and chief executive officer of Koch Industries. “By combining INVISTA’s many capabilities and strong brands, primarily in nylon and spandex, with the polyester businesses of our KoSa subsidiaries, we will create a diverse company, well-positioned to compete in the global fibers and resins markets, long term.” “We are proud to carry with us the heritage we gained at DuPont and thrilled to be headed toward a new company that has proven competitive capabilities, sees growth opportunities in our businesses, and does not feel bounded by current industries or product lines,” said Steve McCracken, president and chief executive of INVISTA. “While being part of a different and privately held company will be a significant change for us, it will certainly offer opportunities to improve our focus on long-term success and more stability in weathering business cycles.” McCracken added. “It should also provide the scale and scope of resources we’ll need to more effectively compete in the challenging branded and commodity markets we serve globally. Together with KoSa, we look forward to creating a renewed superior value offering for our customers.” The new company will be an independent subsidiary of Koch Industries, managed by its own board of directors. About Koch: Koch Industries, Inc., a privately owned company headquartered in Wichita, Kan., owns a diverse group of companies engaged in trading, investments and operations in more than 30 countries around the world. Koch companies are involved in core industries such as petroleum, asphalt, natural gas, gas liquids, chemicals, plastics and fibers, chemical technology equipment, minerals, fertilizers, ranching, securities and finance, as well as in other ventures and investments. About INVISTA: NVISTA, currently a business unit of DuPont, is the largest integrated fiber and intermediates business in the world, with 2002 revenues of $6.3 billion. It has 18,000 employees and interests in 50 global manufacturing sites. Headquartered in Wilmington, Del., it operates in 50 countries and is comprised of three businesses: Apparel; Interiors and Industrial; and Intermediates. INVISTA is committed to its customers’ growth through market insights and technology innovations combined with a powerful portfolio of the best-known global brands and trademarks in the industry including: LYCRA®, STAINMASTER®, ANTRON®, COOLMAX®, THERMOLITE®, CORDURA®, SUPPLEX®, TACTEL®, and in the specialty chemicals business: CORFREE®, DYTEK®, ADI-Pure® and TERATHANE®. About KoSa: KoSa and its subsidiaries are global manufacturers of commodity and specialty polyester products, including PET resins, industrial filament, textile fibers/staple, and intermediates and polymers. From facilities in the United States, Mexico, Canada and Europe, KoSa’s subsidiaries produce PET resins that become shatterproof plastic bottles, polyester intermediates and various manmade fibers that are used in home furnishings, automobile seatbelts and tires.