Rhodia-Ster sold to the Italians
8 Oct 2002
Specialty chemical manufacturer Rhodia has divested its entire 88.4% interest in Rhodia-ster to Gruppo Mossi & Ghisolfi. With sales of $337 million in 2001, Rhodia-ster is the largest producer of polyester fibre products and PET resin in Brazil and South America.
The sale is part of Rhodia's strategy to divest non-core businesses and completes the withdrawal of the company from the polyester business.
As a result of the sale, Rhodia will reduce its debt by approximately 190 million Euros.
Rhodia agreed to sell Rhodia-ster to Gruppo Mossi & Ghisolfi on July 22 this year, but since that time, deteriorating economic conditions in Brazil have reduced the value of Rhodia-ster, causing Rhodia to concede new terms.
Because of this, Rhodia's net results this year will be negatively affected by about 70 million Euros.
