Saba/Koch Consortium to Acquire Hoechst's Polyester Division

Hoechst has announced that it will sell Trevira, its worldwide polyester business, to a new consortium to be formed between KOSA, Ltd., a wholly owned subsidiary of Koch Industries Inc. (Wichita, KS) and Grupo Xtra, (Mexico City) the business of Isaac Saba and his sons. Under the terms of a signed letter of intent, Hoechst will sell the majority of its polyester fibers and resins assets to the new company.

The newly formed company will be one of the world's largest polyester producers. Regional headquarters will remain in Charlotte, N.C., Toluca, Mexico; and Frankfurt, Germany.

Hoechst previously announced plans to sell its European textile fibers operations to Multikarsa Investama and its interest in its global polyester films joint venture to current partner Mitsubishi Chemical Corporation. Hoechst is selling the remainder of its U.S., European and Mexican polyester interests as well as its interests in polyester joint ventures in China and Turkey to the new company. The transaction is subject to approval by the joint venture partners, the consortium, and the Hoechst Board.

Edited by Beth Brindle