- Libeltex Group sold to Beloh Beteiligungsgesellschaft, a TWE Group subsidiary.
- Libeltex has sites in Belgium, France, and Sweden.
- Employee transfers and consultations with Works Councils are in progress.
- Funds from the sale will reduce debt and invest in growth.
Transaction Overview
The Vita Group has sold the Libeltex Group of businesses in Europe to Beloh Beteiligungsgesellschaft, a subsidiary of the Germany-based needlepunch manufacturer TWE Group. The Libeltex Group operates from its head office at a production site in Meulebeke, Belgium, with additional production sites in Macon and Crepy-en-Valois, France, and Bredaryd, Sweden.
Employee Transfers
Employees affected by the divestment will transfer to the new owner. Consultations with Works Councils at European sites and employees at other affected locations have either commenced or been completed.
Financial Strategy
Vita Group CEO Joe Menendez stated that these divestments are part of a planned program to realize return on investment. This transaction marks the third and fourth such divestments by the group this year. The funds raised from these sales have been and will be used to pay down gross debt, thereby reducing interest charges. Additionally, the funds will be invested in market growth for the group's remaining businesses.
Current Financial Position
Following these transactions, the Vita Group now has no net debt and significant cash availability. This debt-free status is considered advantageous, especially in the current uncertain economic climate.
Remaining Business Operations
Beyond its nonwovens business, the Vita Group continues to produce cellular foams, industrial polymers, and thermoplastic sheets.
