Indorama Ventures Ltd. (IVL; Bangkok, Thailand) has announced plans to acquire a 100% equity stake in Oxiteno S.A. – Indústria e Comércio (Sao Paulo, Brazil) and its affiliates.
IVL, through affiliates incorporated in Brazil and Spain, signed a Share Purchase Agreement, with Ultrapar Participações S.A., a listed entity on the São Paulo Stock Exchange, to acquire up to 100% of the total issued and outstanding shares of Oxiteno.
Oxiteno is a leading integrated surfactants producer, catering to many end-use markets in Latin America. The acquisition brings an excellent management team, world-class expertise in green chemistry innovation, strong customer relationships in Brazil, Uruguay and Mexico, and substantial growth potential in attractive end markets, including in the U.S. through a new facility in Pasadena, Texas. Oxiteno has a strong commitment to environmental governance, and its focus on lowering greenhouse gas emissions will also enhance Indorama Ventures’ ESG credentials. Through the acquisition, Indorama Ventures will assume a unique market position in technologies catering to niche, IP-rich and value-added applications in home & personal care, agrochemicals, coatings and oil & gas markets. The surfactants market has seen consistent growth over the last decade, driven by trends in population growth, urbanization and increasing hygiene awareness amid the Covid-19 pandemic.
With 11 manufacturing plants with an ethylene oxide (EO) capacity of 440,000 metric tons per year (m.t./yr), along with various intermediates and downstream derivatives production capabilities, customers in 4 continents, and an experienced management team, Oxiteno will reinforce IVL’s footprint in the U.S and Latin America, while its 5 research and technology centers will add to Indorama Ventures’ innovation credentials in green chemistry. The extended footprint has potential to drive expansion in Europe and Asia by leveraging on IVOX’s surfactants business in Australia and India and Indorama Ventures’ global presence in 34 countries. Indorama Ventures expects to realize synergies of $100 million by 2025 through portfolio adjustments, asset optimization and operational excellence.
The total value of consideration for the Transaction on 100% basis is $1.3 billion, subject to customary adjustments for transactions of this nature.