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Amoco Fabrics and Fibers signs agreement to purchase Phillips Fibers.

In one of the more quickly accomplished sales to take place in the nonwovens industry in recent years, roll goods supplier Amoco Fabrics and Fibers, Atlanta, GA, announced in late August that it had signed an agreement to purchase 100% of the stock of nonwoven roll goods and fiber supplier and competitor in the geotextile area, Phillips Fibers, Greenville, SC. Terms of the sale were not disclosed and the purchase has not been finalized pending governmental approval.

Phillips was placed on the market last March by parent company Phillips 66 as a means of gaining capital by divesting a non-core business. The company, which is the 16th largest manufacturer of nonwoven roll goods according to nonwovens industry's Top Companies survey published last month, had estimated 1992 sales of $115 million. Amoco, which placed 22nd in the Top Companies survey, had sales of $82 million. The acquisition should propel the new company into the top 10 largest nonwovens companies.

Amoco currently has transition teams in place in preparation for the final sale. The new acquisition will fall under the responsibility of Frank Andrusko, president of Amoco Fabrics and Fibers. We are delighted to purchase Phillips Fibers," said Mr. Andrusko, adding that it is an excellent strategic fit for the company. "We are starting to work on the transition and resolve whatever issues we can at this time," he said. "We hope to be able to close the deal within a few days of governmental approval," which Mr. Andrusko said may take another 30-60 days.

While specific transition strategies are still being determined, Mr. Andrusko did say that there is a high probability that Amoco will close Phillips Fibers' Greenville, SC office. We both have headquarters and R&D facilities; there is certainly a duplication of effort that must be resolved," he said. Mr. Andrusko added that none of Phillips' plants - it has facilities in Spartanburg and Seneca, SC and Rocky Mount, NC - would be closed and no manufacturing personnel are expected to be impacted by the sale.

Phillips Fibers employs approximately 1400 people and supplies primarily U.S. markets in geotextiles, home furnishings, roofing and industrial fabrics. Amoco Fabrics and Fibers has a European sister company, Amoco Fabrics Europe; however, both subsidiaries concentrate on different market segments. In the U.S., geotextiles account for about half of Amoco Fabrics' sales; it has also been active in several new areas with its "Claf," "RFK" and "AP3" fabrics introduced during the past several years.
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Publication:Nonwovens Industry
Date:Oct 1, 1993
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