Aviation services firm to offload fiberweb arm
Aviation services firm BBA today announced plans to spin off its unit making fibres for products such as nappies, bath mats and shoelaces.
BBA said it was “currently reviewing possible separation options” that include a demerger or sale of its Fiberweb arm, which is thought to be worth £700m (€1.02bn).
The company admitted it made little sense keeping Fiberweb roped together with BBA Aviation, which provides cargo handling, ground handling and other services from 95 airports worldwide.
The news was applauded by investors as shares in BBA rose nearly 6%, valuing the entire firm at £1.5bn (€2.2bn).
A report in the Financial Times today said Fiberweb would be attractive to private equity firms because of its steady cash flow, while strategic buyers looking for bolt-on acquisitions may also be interested.
Fiberweb is the the largest producer of non-woven materials for the hygiene market and the third-largest producer of non-wovens overall.
Its headquarters is in London and its key manufacturing base in the UK is in Pontypool, Gwent, producing fibres used in items ranging from vacuum cleaners and ventilation filters to underlay and insulation.
BBA, which traces its history back more than a century when it was known as British Belting and Asbestos, employs more than 12,000 staff worldwide.
