Ineos Capital Ltd. is shelling out 670 million euros - about $900 million - to acquire the PVC unit of Norsk Hydro ASA. It's the fourth time in less than three years that Lyndhurst-based Ineos has made a major plastics deal.
``This is an important acquisition for Ineos,'' Jim Ratcliffe, Ineos' chief executive, said in a news release. ``Hydro's polymers business has a very good strategic fit with the Ineos portfolio.''
The deal with Oslo, Norway-based Norsk Hydro is expected to close in the third quarter of 2007. The unit - doing business as Kerling ASA - employs 1,200 at plants in Norway, Sweden and the United Kingdom, producing PVC, vinyl chloride monomer feedstock and related products.
The transaction also includes shares in joint ventures in Norway, Qatar and China, as well as an ownership stake in PVC maker Companhia Industrial de Resinas Sinteticas (Cires) SA of Estarreja, Portugal. The unit posted sales of about $1.1 billion in 2006 - an increase of 25 percent over 2005.
Since early 2005, Ineos has acquried the polyolefins and olefins business of British Petroleum plc and the North American polystyrene business of BASF AG. The 15,000-employee Ineos also has merged its styrenics businesses in North America and Europe with those of Nova Chemicals Corp. of Pittsburgh.