CALGARY, ALBERTA (May 9, 5:05 p.m. ET) — A plastics materials deal has taken shape on the streets of Calgary, with resin maker Nova Chemicals Corp. selling its performance styrenics business to building products maker PFB Corp. for an undisclosed price.
Both firms are based in Calgary. The deal includes Nova's expandable polystyrene resins and Arcel-brand styrenic copolymers.
As part of the deal, Nova will acquire an equity stake in PFB and will hold two seats on the firm's board of directors. Robert Snyder, Nova performance styrenics' vice president, will become PFB's chief operating officer.
The deal represents an upstream integration move for PFB, which operates in Canada as Plasti-Fab Ltd. Its primary products are insulating building products made of materials ranging from EPS to concrete to wood.
Nova “has long been a leading North American producer of moldable foam resins with a diverse product portfolio serving the construction, packaging, and global cup and container markets, “ PFB chief operating officer C. Alan Smith said in a May 9 news release. “Together we have the opportunity to better serve customers - providing outstanding products to the market.”
PFB posted sales of $89.2 million in 2011 — an increase of more than 25 percent vs. 2010. Nova — one of North America's largest polyethylene makers - rang up sales of $5.2 billion last year, up 13 percent from 2010. Nova is wholly owned by International Petroleum Investment Co., a state-owned firm based in Abu Dhabi, United Arab Emirates.