Aliaxis SA, a global manufacturer and distributor of advanced plastic piping systems, has announced that it has signed an agreement to divest its businesses in South-East Asia (Malaysia and Singapore) to LESSO Group, a large industrial group of pipes and fittings, home furnishings and other building materials in China.
This divestment is in line with Aliaxis’ strategy to focus on core growth markets and opportunities. A search for a suitable buyer has been completed successfully and LESSO Group will acquire the “Paling operation assets” in Malaysia and “Snow operation” in Singapore. The transaction is expected to close in Singapore in October 2020 and a few months later in Malaysia as it is subject to customary closing conditions, including appropriate regulatory approvals. The financial details of this transaction will not be disclosed.
“As we drive for profitable growth, we need to set a higher bar for short-term performance as well as sustainable longer-term returns. That means choosing to focus and invest in markets and opportunities with the highest potential, while divesting other parts of our business when this is the better option,” says Koen Sticker, acting CEO Aliaxis.
“Over the past 18 months, the team has worked hard to turn the South-East Asian businesses around, and we are pleased that this has resulted in a successful transaction with LESSO Group, a well-respected company in the marketplace. We wish to thank everyone in the region for their efforts,” says Mark Nykiel, Divisional CEO for APAC.