Today, RUTGERS AG, Essen, a wholly-owned subsidiary of RAG Aktiengesellschaft, signed an agreement for the sale and purchase of the business of its wholly-owned subsidiary, Isola AG, Duren, Germany, to a consortium of Texas Pacific Group, a leading US private equity fund based in Fort Worth, Texas, and Redfern Partners, a strategic investor in the PCB industry based in Lake Forest, California.
Both parties agreed to keep the purchase price confidential. The sale is subject to the consent of supervisory bodies and antitrust authorities, and is expected to close in the second quarter of 2004.
Isola AG is the world's leading provider of copper-clad glass-fiber reinforced base materials (glass epoxy laminates) for the production of printed circuit boards. The company has ten production facilities in Europe, Asia and the US, and generated revenues of approximately EUR 380 million in 2003, with a workforce of about 2,400 employees. Texas Pacific Group will maintain the companys manufacturing location in Duren as a key element of Isolas European strategy.
Dr. Heinz Rzehak, chairman of the management board of RuTGERS AG, said: "We are very pleased with the swift signing of the sales agreement of Isola. The sale constitutes another milestone in the RuTGERS plastics divestment process." Rzehak said he was confident that the employees of Isola had excellent prospects for the future with the new owner.
John Marren, Senior Partner of Texas Pacific Group, said: "We are tremendously excited about the acquisition of Isola and we look forward to working with management, employees, customers and suppliers of the company. Texas Pacific Group plans to invest significantly in the future growth of the business in Europe, Asia and the US, thereby leveraging its leading market position, as well as its strong customer relationships and human resources."
Don Redfern, of Redfern Partners, said: "We could not be more satisfied with the outcome of the transaction and our partnership with Texas Pacific Group. TPG shares our same vision for the future of Isola. This is an industry that Tim Redfern and I deeply believe in and we are looking forward to providing long-term stability to Isola which will benefit its customers in all regions of the world."