Old World deal helps Indorama on feedstock integration

By Gurdip Singh
Correspondent

Published: February 7, 2012 6:00 am ET

Related to this story

Topics Materials, Mergers & Acquisitions, Suppliers

BANGKOK (Feb. 7, 1:30 p.m. ET) — Thailand’s Indorama Ventures Public Co. Ltd. plans to acquire Old World Industries I Ltd. and Old World Transportation Ltd., a U.S.-based ethylene oxide and ethylene glycol producer, for $795 million.

Old World makes automotive antifreeze, but mono ethylene glycol is also a key component in purified terephthalic acid, a feedstock for PET resins.

The deal is scheduled to be completed in the first quarter of this year, according to Bangkok-based IVL.

IVL has already integrated into PTA in Europe and Asia and virtually integrated in the USA via co-location with a PTA supplier in Alabama.

“I am delighted that we were able to acquire Old World in the USA as it represents a rare opportunity to integrate into MEG in the most competitive zone for feedstock availability,” said Aloke Lohia, group CEO of Indorama Ventures Public Co. Ltd.

“Competitiveness of petrochemicals in the USA has been bolstered because of the favorable gas price, relative to oil, due to the abundance of shale gas. By entering MEG now, IVL will be able to capture the premium margins that are expected to remain firm for the next 4-5 years when new capacities are likely to enter the market.”

The acquisition makes IVL the only global player in polyester with integration into both PTA and MEG, he said.

Old World is located in Clear Lake, Texas, near Houston.

The deal was being financed in part by new credit facilities granted by Siam Commercial Bank and cash available with IVL from earlier fund raising activities, said IVL.

Evercore Partners and HSBC were financial advisors to IVL and Allen & Overy acted as legal advisors. The Company received market and technical due diligence by CMAI, ERM and Jacobs.

William Blair were financial advisors to Old World and Bracewell & Giuliani advised Old World.


Comments

Old World deal helps Indorama on feedstock integration

By Gurdip Singh
Correspondent

Published: February 7, 2012 6:00 am ET

Post Your Comments


Back to story


More stories

Image

Startup post-consumer recycling specialty company Zzyzx wins grant

September 2, 2014 1:33 pm ET

An Allentown, Pa., company is receiving a grant of $737,000 to help support its efforts to develop polymers using post-consumer plastics.    More

Image

A. Schulman buys Australia's Compco, 10th acquisition in 4 years

September 2, 2014 11:13 am ET

Akron, Ohio-based A. Schulman Inc., a supplier of high-performance plastic compounds and resins, said it has acquired a company near Melbourne,...    More

Image

Battenfeld-Cincinnati secures major Chinese extruder deal

September 2, 2014 10:58 am ET

An undisclosed major Chinese pipe manufacturer has ordered 25 extruders from German-Austrian company Battenfeld-Cincinnati's subsidiary, Battenfeld-...    More

Image

Optical disc molder OEM getting into micromolding with acquisition of CDA

August 29, 2014 11:24 am ET

Optical disc replicator and molder Optical Experts Manufacturing Inc. of Charlotte, N.C., has expanded its core business and entered new high...    More

Image

EPA fines RI polymer company

August 29, 2014 1:20 pm ET

A Rhode Island polymer manufacturer has reached a $60,000 settlement with the U.S. Environmental Protection Agency (EPA) for violating federal clean a...    More

Market Reports

Thermoformed Packaging 2014 Market Review & Outlook North America

This in-depth report analyzes economic and market trends, legislative/regulatory activity impacting supply and demand, business opportunities and threats, materials pricing, manufacturing technology, as well as growth strategies being implemented by thermoformed packaging companies.

Learn more

Pipe, Profile & Tubing Extrusion in North America 2014

U.S. demand for extruded plastics is expected to grow by 3 percent in 2014, with PVC remaining the largest segment.

Plastic pipe will post the strongest gains through 2018, continuing to take market share from competing materials in a range of markets.

Our latest market report provides in-depth analysis of current trends and their financial impact on the pipe, profile and tubing extrusion industry in North America.

Learn more

2014 Injection Molding Industry Report

GROWTH, OPPORTUNITY IN SIGHT FOR INJECTION MOLDERS IN 2014

In the wake of the economic turbulence earlier in this decade, molders today find themselves in much better shape. Molders are gaining a competitive advantage by investing in people, equipment and seeking inroads into new markets on a global scale.

Growth in the injection molding industry is going to be driven by low financing costs and a continued move to reshore some business.

Learn more

Upcoming Plastics News Events

September 10, 2014 - September 12, 2014Plastics Caps & Closures 2014

January 14, 2015 - January 14, 2015Plastics in Automotive

February 4, 2015 - February 6, 2015Plastics News Executive Forum 2015

More Events