CALGARY, ALBERTA (Nov. 16, 12:45 p.m. ET) — Building products maker PFB Corp.'s deal to acquire the performance styrenics business of resin maker Nova Chemicals Corp. has been terminated.
In a Nov. 16 news release, officials with PFB and Nova -– both of which are based in Calgary, Alberta — said that the two sides “have been unable to execute definitive agreements in accordance with the terms of the letter of intent.”
The deal had been announced in May. Under terms of the deal, PFB would have acquired Nova's expandable polystyrene and Arcel-brand styrenic copolymers businesses, including plants in Painesville, Ohio, and Monaca, Pa. Nova also would have acquired an equity stake in PFB, which operates in Canada as Plasti-Fab Ltd., making insulating building products from EPS, concrete and wood.
PFB would have become a much larger company if the Nova deal had been completed. PFB has annual sales of about C$90 million, while Nova's EPS and Arcel business had sales of almost US$330 million last year.
Financial performance at PFB – which is publicly traded on the Toronto Stock Exchange – in the first nine months of 2012 declined quite a bit from the same period in 2011. The firm's nine-month profit fell almost 86 percent to C$321,000 even though its nine-month sales total slid less than two percent to C$64.6 million.