IVL completes Oxiteno acquisition
Thailand’s Indorama Ventures (IVL) has completed its acquisition of 100% of Brazil-based Oxiteno from Ultrapar Participações, following approval by Brazil’s Administrative Council for Economic Defence. IVL said that the deal, first announced in August 2021, makes it “the leading surfactants producer in the Americas, with additional potential to expand in Europe and Asia”.
Oxiteno brings with it 11 manufacturing plants in Brazil, Uruguay, Mexico and the US, five R&D centres and commercial offices across the world, including Europe and China. It will become part of IVL’s Integrated Oxides & Derivatives business segment, which was formed in 2020 with the acquisition of Huntsman’s Spindletop assets. IVL’s other segments are in PET and fibres.
The transaction has an enterprise value of 6.1x EV/EBITDA based on 2021 results and is earnings-accretive immediately, IVL noted. It is fully financed by free cash flows, including a deferred payment of $150 million in April 2024, working capital short-term assets and debt. IVL expects to drive savings of $100 million through portfolio adjustments, asset optimisation and ‘operational excellence’.