High-Value Surfactants Indorama Ventures to Acquire Brazil-based Oxiteno for 1.3 Billion Dollars
Indorama Ventures has plans to create a unique portfolio in high-value surfactants post the takeover of Oxiteno Indústria e Comércio. The move will expand the company’s existing Integrated Oxides and Derivatives business.
Bangkok/Thailand – Indorama Ventures Ltd (IVL) has recently announced that it has agreed to acquire Brazil-based Oxiteno Indústria e Comércio, a subsidiary of Ultrapar Participações. The acquisition gives IVL a unique portfolio in high-value surfactants and significantly extends its existing Integrated Oxides and Derivatives (IOD) business.
Oxiteno is a leading integrated surfactants producer, catering to highly attractive end-use markets in LATAM. 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 the U.S. through a new facility in Pasadena, Texas, USA. Oxiteno has a strong commitment to environmental governance, and its focus on lowering greenhouse gas emissions will also enhance IVL’s ESG credentials.
Oxiteno will complement IOD’s footprint in the U.S and Latin America, while its 5 research and technology centers will add to IVL’s innovation credentials in green chemistry..
Through the acquisition, IVL 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, customers in 4 continents, and an experienced management team, Oxiteno will complement IOD’s footprint in the U.S and Latin America, while its 5 research and technology centers will add to IVL’s 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 IVL’s global presence in 34 countries. IVL expects to realize synergies of 100 million dollars by 2025 through portfolio adjustments, asset optimization and operational excellence.
IVL will purchase Oxiteno for 1.3 billion dollars (subject to adjustments at closing), with a deferred payment of 150 million dollars in 2024. The transaction is subject to customary conditions to closing, including approval of relevant regulatory authorities. The transaction is expected to close in Q1 2022.