Materials distributor Tricon Energy of Houston is acquiring eXsource, a specialty polymer distribution business based in Australia and New Zealand.
Tricon is buying eXsource from Qenos Pty. Ltd., which is in the process of shutting down. The deal is expected to close in the next month.
"We are growing our polymers distribution business," Tricon CEO Ignacio Torras said in a news release. He added that the acquisition "adds new geography to the range of services we offer to our customers and suppliers, and expands our market position in Australia and New Zealand."
As part of the deal, Tricon will acquire inventory, receivables and the eXsource brand. eXsource employees will join Tricon as part of the transaction.
Torras said the eXsource employees joining Tricon "bring valuable market knowledge and customer relationships, along with a fantastic legacy and reputation."
Martyn Jones, eXsource business manager, said the deal "represents a great opportunity for eXsource to combine our local knowledge and partnerships with the global strength of Tricon."
Qenos formed eXsource in 2017 to sell a range of polymers. eXsource expanded to New Zealand in 2019.
The deal is the second plastics acquisition for Tricon in less than a year. In December, the firm acquired Mexico's Polymat SA de CV in early December. Polymat distributes polymers, engineering plastics and additives and operates three terminal shipment centers and warehouses across the region. The Polymat deal included Q-Logistics, a Mexico-based logistics service provider.
Qenos, Australia's only ethylene manufacturer and a major polyethylene producer, entered voluntary administration earlier this year, just days after its Chinese owner sold the company to property developers. Qenos had been owned by the Chinese government-owned China National Chemical Corp., known as ChemChina, since late 2005.
In early April, ChemChina sold Qenos to LAOP BidCo Pty. Ltd. Days later, LAOP called in administrators. The administration process is similar the U.S. bankruptcy process. Media reports said the purchaser was not interested in operating the plastics business but in gaining access to its two large industrial sites in Botany and Altona, suburbs of Sydney and Melbourne that are located near water and rail transport infrastructure.