MOSCOW (MRC) -- Mexican petrochemical company Alpek has signed an agreement to acquire international PET laminate producer Octal Holding for USD620 mln, said Reuters.
The financing for the acquisition will be covered through cash available on Alpek’s balance sheet, funds from its existing businesses and bank loans, and was made possible in part by the strength of its 2021 results, Alpek said.
"This transaction is ideal for Alpek. Through a single acquisition we get access to the growing and profitable segment of PET laminate," Alpek Chief Executive Officer Jose de Jesus Valdez said in a statement.
Octal serves customers in the Americas, the Middle East and Europe from its logistics center in Oman. It owns direct-to-sheet (DPET) technology, which eliminates several energy-intensive conversion steps, resulting in lower production costs.
The acquisition will add more than 1 million tonnes to Alpek’s capacity, the company said.
As per MRC, the polyethylene terephthalate (PET) manufacturing facility, formerly known as Lotte Chemical UK in the UK, is now owned by a subsidiary of Alpek and operates under the name Alpek Polyester UK Ltd. The deal, announced in October, includes a 350,000 tpa PET plant in Wilton. This is Alpek's first acquisition outside of America. The agreement entered into force on 1 January, 2020.
We remind, Alpek (Monterrey, Mexico) finished commissioning and begin production at a Reading, Pennsylvania, recycled polyethylene therephthalate (PET) facility in the third quarter of 2021. DAK Americas, Alpek's US subsidiary, bought the facility in late-May for USD98.1 million at an auction in the bankruptcy case of California recycled PET producer CarbonLite.
Alpek operates two main business segments, focused on polyester, and plastics and chemicals, and is a leading producer of purified terephthalic acid (PTA) and polyethylene terephthalate (PET). It is also the largest EPS manufacturer in the Americas.
MRC