IVL to Buy Brazilian Surfactants Maker Oxiteno

17.08.2021 - Indorama Ventures (IVL), a world leader in the PET market, is continuing its acquisition spree, in its latest move buying Brazil’s Oxiteno Indústria e Comércio, a subsidiary of Ultrapar Participações. In picking up the new asset, IVL said it will gain a unique portfolio in high-value surfactants and significantly expand its existing Integrated Oxides and Derivatives (IOD) business.

The purchase price is $1.3 billion, subject to adjustments at closing, with a deferred payment of $150 million in 2024. IVL said the acquisition, which is subject to regulatory approval, is expected to complete in Q1 2022 and be earnings accretive immediately. The Thai group said it stands to realize synergies of $100 million by 2025 through portfolio adjustments, asset optimization and operational excellence.

As an integrated surfactants producer with 11 manufacturing plants and customers on four continents, Oxiteno will give IVL “strong customer relationships” in Brazil, Uruguay and Mexico, but also substantial growth potential in attractive end markets, such as in the US, where  the company has a new plant in Pasadena, Texas.

The Brazilian company’s focus on lowering greenhouse gas emissions is another plus of the deal, Indorama said. Going forward, it 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.

Together with the “world-class assets” acquired from US chemical producer Huntsman in 2020, IVL said the acquisition of Oxiteno will lead its newest business segment to become a major high-margin growth driver alongside its traditional PET commodities business, thereby creating a stronger and more resilient hybrid platform.

Author: Dede Williams, Freelance Journalist