Axiall Sells Aromatics Arm to Ineos
Axiall, the US commodity chemicals business resulting from the 2013 merger of Georgia Gulf and PPG, has sold its Aromatics division at Pasadena, Texas to Ineos Americas for around $62.9 million in cash, including $52.4 million at closing and an additional $10.5 million payable upon satisfaction of certain conditions.
The transaction that closed on Sept. 30 includes a 90,000 t/y facility at Pasadena that produces cumene as a feedstock for phenol, acetone and alpha-methylstyrene. The phenol, acetone and alpha-methylstyrene business will transfer to the Ineos Phenol facility at Mobile, Alabama. Axiall is retaining its phenol plant at Plaquemine, Louisiana, which is integrated with other facilities at the site, but plans to wind it down by the end of this year.
Axiall Interim President and CEO Tim Mann said this is the company’s second divestiture of non-core assets in 2015, following the sale of its phosgene business in February. Both divestments will allow the Atlanta-based company to better focus on its core chlorovinyls, derivatives and specialties businesses, he added.
Hans Casier, CEO of Ineos Phenol, said buying the cumene plant and the transfer of the former Axiall phenol and acetone business to Mobile “presents an excellent opportunity to further improve our competitiveness.”