Avgol To Acquire Cleaver Associates
Avgol Nonwoven Industries, Israel, has agreed to acquire the assets and operations of its
distributor Cleaver Associates Inc., Wayne, Pa., for $7 million. Avgol will integrate Cleaver's
U.S. sales and distribution operations with its own operations. Cleaver was responsible for
approximately 80 percent of Avgol's sales in 2010.
"The acquisition of Cleaver is part of Avgol's strategy of merging its external sales and distribution systems into the company's operations in order to proceed with our expansion plans in Avgol's international markets," said Avgol CEO Shlomo Liran. "Recently, Avgol announced the implementation of investments that are expected to expand our production capacity to about 140,000 tons, at an investment of about US$80 million. The production capacity will be expanded during 2011-2012 at Avgol's plant in the U.S. and on another continent."
Avgol has 11 production lines — five in Israel, three in the United States, two in China and one in Russia — and manufactures more than 10 percent of the global market's raw materials for diapers.
Cleaver will continue marketing Avgol's products as it does currently until the end of 2012.