Axiall Corp., an integrated chemicals and building products company, has sold its Aromatics division and Pasadena, Texas, manufacturing facility to INEOS Americas LLC for approximately US$62.9 million in cash, of which US$52.4 million was paid at closing and an additional US$10.5 million may be payable upon satisfaction of certain conditions. The transaction became effective end of day on 30 September 2015. Lincoln International acted as Axiall's financial advisor in the transaction.
Axiall retained its phenol facility located in Plaquemine La., which is integrated with other Axiall facilities at Plaquemine, along with the associated net working capital. The company plans to conduct a safe wind-down of that facility by year-end 2015.
The Pasadena facility, which began operations in 1979, manufactures cumene. Cumene is used in the production of phenol, acetone and alpha-methylstyrene, all of which are building blocks for a range of everyday products including plywood and oriented strand board, engineered plastics, pharmaceuticals, and paints, acrylics and varnishes.
“As we refine our portfolio, we are pleased to have reached an agreement to sell our aromatics business to INEOS,” said Axiall Interim, President and CEO, Tim Mann. “This is our second divestiture of non-core assets in 2015, following the February sale of our phosgene business, both of which allow us to better focus on our core chloro-vinyls, derivatives and specialties businesses.”
INEOS Phenol is a major producer of phenol and acetone. INEOS Americas LLC operates a phenol plant in Mobile, Ala. Other INEOS manufacturing sites in the United States are located in California, Florida, Louisiana, Massachusetts, New Mexico, Ohio and Texas.
“We are very pleased to have completed this acquisition. Bringing together the cumene plant with our own facilities and the transfer of the phenol and acetone business to our unit in Mobile presents an excellent opportunity to further improve our competitiveness,” said Hans Casier, CEO INEOS Phenol. “These are good quality, well placed assets, complemented by a very experienced operations team and high safety, health and environmental standards.”
Edited from press release by Angharad Lock
Read the article online at: https://www.hydrocarbonengineering.com/petrochemicals/02102015/axiall-corp-sells-aromatics-business-1526/