Northfield, Illinois – Invista’s aromatic polyester polyol business has been acquired by Stepan. No price has been given for the all-cash deal; the acquired business has global sales of about $100m.
The polyols are sold under the Terate brand. They are used in the manufacture of flex-faced boardstock, metal-faced sandwich panels, spray foam, block foam. They also have a variety of CASE applications.
The acquisition gives Stepan two manufacturing sites, one in Wilmington, North Carolina, and the second in Vlissingen, Netherlands. Inventory, IP and working capital are also included.
According to Invista, the polyols deliver high compressive strengths, high weight retention and high volume retention in fire and smoke testing in polyurethane and polyisocyanurate foams.
‘This acquisition expands our manufacturing capability in both the US and Europe, enhances our business continuity capabilities and supports the growth of our global rigid polyol business,’ said Stepan’s chairman and CEO Quinn Stepan. ‘We expect that Invista’s available spare capacity, plus debottlenecking opportunities in both plants, will allow Stepan to grow in a capital efficient way.’
He added that the company believes the long-term prospects for rigid polyols in insulation remains strong in the light of energy conservation and increasingly stringent building codes.